Potential Sources of Funding to Target for Support in ... · KWAMP Kirehe Community Based Watershed Management Project LAFREC Landscape Approach to Forest Restoration & Conservation

Potential Sources of

Funding to Target for

Support in

Environmental

Mainstreaming

Scoping Report

30th

September

2016

Scoping Report – Resource Mobilisation for Environmental Mainstreaming 2

Table of Contents

Executive Summary ................................................................................................................ 9

Report Proper ........................................................................................................................ 11

1 Introduction ................................................................................................................................ 11

2 Current funding situation for the agriculture sector ................................................................... 11

3 Rwanda’s access to international climate funds ....................................................................... 13

3.1 Rwanda’s access to international climate funds ............................................................................ 13

3.2 Funds relevant to mainstreaming environment and climate change concerns into agricultural

development in Rwanda.............................................................................................................................. 14

4 Next steps .................................................................................................................................. 32

Annexes ................................................................................................................................. 34

Annex 1 Development partners in Rwanda’s agriculture sector ............................................................. 34

1 International Fund for Agricultural Development (IFAD) ........................................................... 34

1.1 Project for Rural Income through Exports (PRICE) ....................................................................... 34

1.2 National Sericultuture Centre (NSC) .............................................................................................. 35

1.3 Climate Resilient Post-Harvest and Agribusiness Support Project (PASP) .................................. 35

1.4 Kirehe community-based Watershed management Project (KWAMP) ......................................... 36

2 World Bank................................................................................................................................. 36

2.1 Third Phase of the Transformation of Agriculture Sector Program-for-Results (Pfor R) Project for

Rwanda ....................................................................................................................................................... 37

2.2 Rwanda Feeder Roads Development Project ................................................................................ 37

2.3 Third Rural Sector Support Project (RSSP3) ................................................................................. 37

2.4 Land Husbandry, Water Harvesting and Hillside Irrigation AF ...................................................... 38

2.5 Landscape Approach to Forest Restoration and Conservation (LAFREC) ................................... 39

2.6 Rwanda Pilot Program for Climate Resilience – pipeline project................................................... 39

2.7 Lake Victoria Environmental Management Project (LVEMP) ........................................................ 39

3 European Union ......................................................................................................................... 39

4 African Development Bank (AfDB) ............................................................................................ 40

4.1 Livestock Infrastructure Support Programme (LISP) ..................................................................... 40

5 DFID ........................................................................................................................................... 41

5.1 Programme of Support to Agriculture ............................................................................................. 41

5.2 Improving Market Systems for Agriculture in Rwanda (IMSAR) .................................................... 42

5.3 FONERWA ..................................................................................................................................... 42

6 Belgian Development Agency (BTC)......................................................................................... 42

6.1 Support to SPAT II.......................................................................................................................... 42

7 USAID ........................................................................................................................................ 42


7.1 Rwanda Climate Services for Agriculture project ........................................................................... 43

7.2 Feed the future project ................................................................................................................... 43

8 FAO ............................................................................................................................................ 45

8.1 Africa Solidarity Trust Fund for Food Security ............................................................................... 46

9 NEPAD ....................................................................................................................................... 46

9.1 Gender, Climate Change and Agriculture Support Programme (GCCASP).................................. 46

10 UNDP ......................................................................................................................................... 47

10.1 Poverty and Environment Initiative (PEI) ....................................................................................... 47

10.2 Decentralisation and Environmental Management Project II (DEMP II) ........................................ 48

Annex 2 International Climate Funds ...................................................................................................... 49

1 Multilateral climate funds ........................................................................................................... 49

1.1 Green Climate Fund ....................................................................................................................... 49

2 Climate Investment Funds ......................................................................................................... 50

2.1 Pilot Programme for Climate Resilience ........................................................................................ 50

2.2 Forest Investment Program ............................................................................................................ 51

2.3 Scaling Up Renewable Energy in Low Income Countries Program............................................... 52

2.4 GEF Trust Fund - Climate Change focal area ............................................................................... 54

2.5 Least Developed Countries Fund ................................................................................................... 57

2.6 Bilateral climate funds .................................................................................................................... 64

Annex 3 Other Projects ........................................................................................................................... 68

Tables

Table 1: Agriculture sector projects funded by development partners .............................................................. 11 Table 2: List of multilateral climate funds and their relevance to Rwanda......................................................... 17 Table 3: ............................................................................................................................................................... 31 Table 4: ............................................................................................................................................................... 56

Disclaimer

The British Government’s Department for International Development (DFID) financed this work as part of the United Kingdom’s aid programme. However, the views and recommendations contained in this report are those of the consultant, and DFID is not responsible for, or bound by the recommendations made.

Lead Author: Debbie Caldwell QA’d, in whole or in part, by: Charlotte Ellis


Acronyms & Abbreviations

ACIAR Australian Centre for International Agriculture Research

ADB Asian Development Bank

AF Adaptation Fund

Agri-TAF Agriculture Technical Assistance Facility

API Agro-Processing Industry

ASAP Adaptation for Smallholder Agriculture Programme

ASIP Agriculture Sector Investment Plan

ASTF Africa Sustainable Transport Forum

BAU Birsa Agricultural University

BEIS Department for Business, Energy & Industrial Strategy

BHEARD Borlaug Higher Education for Agricultural Research Development

BMUB Federal Ministry for the Environment, Nature Conservation, Building & Nuclear Safety

(Germany)

BTC Belgian Technical Cooperation

CAADP Comprehensive Africa Agriculture Development Programme

CCAFS CGIAR Research Program on Climate, Agriculture & Food Security

CDD Community Driven Development

CDKN Climate Development & Knowledge Network

CDM Clean Development Mechanism

CEO Chief Executive Officer

CER Certified Emission Reductions

CGIAR Consultative Group for International Agricultural Research

CIAT International Centre for Tropical Agriculture

CICA Agricultural Information & Communication Centre

CIF Climate Investment Fund

CIP Crop Intensification Programme

COMESA Common Market for Eastern & Southern Africa

CPF Country Programming Framework

CSA Climate Smart Agriculture

DECC Department for Energy & Climate Change (UK)

DEFRA Department for Environment, Food & Rural Affairs (UK)

DEMP Decentralisation & Environment Management Project

DFID Department for International Development


DG Director General

DRR Disaster Risk Reduction

EAC East African Community

EADD EAST Africa Dairy Development

EBRD European Bank for Reconstruction & Development

EDA Enhanced Direct Access

EDF European Development Fund

ENACTS Enhancing National Climate Services

ENRM Environmental & Natural Resource Management

EOI Expression of Interest

ESSA Environmental & Social Systems Assessment

EU European Union

EUR Euros

FAO Food & Agriculture Organisation of the United Nations

FCO Foreign & Commonwealth Office

FCPF Forest Carbon Partnership Facility

FFLS Farmer Field & Life Schools

FFS Farmer Field Schools

FIP Forest Investment Program

FONERWA National Climate & Environment Fund

FSP Full-sized Projects

GBP Pounds Sterling

GCCA Global Climate Change Alliance

GCCASP Gender, Climate Change & Agriculture Support Programme

GCF Green Climate Fund

GEF Global Environment Facility

GEFTF GEF Trust Fund

GGCRS Green Growth Climate Resilience Strategy

GGGI Global Green Growth Institute

GHG Greenhouse Gas

GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit

GoR Government of Rwanda

ICF International Climate Fund

ICI International Climate Initiative

ICRAF World Agroforestry Centre

IDB Inter-American Development Bank

IFAD International Fund for Agricultural Development


IFC International Finance Corporation

ILRI International Livestock Research Institute

IMSAR Improving Market Systems for Agriculture in Rwanda

IPM Integrated Pest Management

IRI International Research Institute for Climate & Society

IUCN international Union for Conservation of Nature

IWRM Integrated Water Resource Management

KWAMP Kirehe Community Based Watershed Management Project

LAFREC Landscape Approach to Forest Restoration & Conservation

LDC Least Developed Country

LDCF Least Developed Countries Fund

LIP Livestock Intensification Programme

LISP Livestock Infrastructure Support Programme

LULUCF Land Use, Land-use Change & Forestry

LVEMP Lake Victoria Environmental Management Project

LWH Land Husbandry, Water Harvesting & Hillside Irrigation

LWS Livestock watering system

MCC Millennium Challenge Corporation

MDBs Multilateral Development Banks

MIE Multilateral Implementing Entity

MINAGRI Ministry of Agriculture & Animal Resources

MINECOFIN Ministry of Finance & Economic Planning

MINELA Ministry of Environment & Lands (Rwanda)

MINICOM Ministry of Trade & Industry

MININFRA Ministry of Infrastructure

MINIRENA Ministry of Natural Resources

MINITERE Ministry of Lands Environment, Forests, Water & Mines (Rwanda)

MSPs Medium-sized Projects

MWs Mega Watts

NAEB National Agriculture Export Board

NAMA Nationally Appropriate Mitigation Action(s)

NAPA National Adaptation Programmes of Action

NDA National Designated Authority

NEPAD New Partnership for Africa’s Development

NICFI Norway's International Climate & Forest Initiative

NIE National Implementing Entity

NSC National Sericulture Centre


NSOs NAMA Support Organisations

OFP Operational Focal Points

PASP Post-Harvest & Agribusiness Support Project

PDCRE Cash & Export Crops Development Project

PEI Poverty - Environment Initiative

PIDG Private Infrastructure Development Group

PIF Project Identification Form

PMU Programme Management Unit

PoSA Programme of Support for Agriculture

PPCR Pilot Program for Climate Resilience

PPP Public-Private Partnership

PPPMER Rural Small & Microenterprise Promotion Project

PRICE Project for Rural Income through Exports

PS Permanent Secretary

PSTA Strategic Plan for the Transformation of Agriculture

PV Photo Voltaic

RAB Rwanda Agricultural Board

REDD Reducing Emissions from Deforestation & Forest Degradation

REG Rwanda Energy Group

REMA Rwanda Environment Management Authority

RIWSP Rwanda Integrated Water Security Program

RNRA Rwanda Natural Resource Authority

RSFF Rwanda Silk Farmers Federation

RSSP Rural Sector Support Project

SADC Southern Africa Development Community

SC Steering Committee

SCCF Special Climate Change Fund

SDC Swiss Development Cooperation

SEDP Sustainable Energy Development Project

SFA Sustainable Food & Agriculture

SIDA Swedish International Development Cooperation Agency

SIDS Small Island Developing States

SLM Sustainable Land Management

SPCR Strategic Program for Climate Resilience

SPIU Single Project Implementation Unit

SREP Scaling-Up Renewable Energy Program for Low Income Countries

SWG Sector Working Group


TA Technical Assistance

UK United Kingdom

UN United Nations

UNDP United Nations Development Programme

UNEP United Nations Environment Programme

UNFCCC United Nations Framework Convention on Climate Change

UNICEF United Nations Children's Fund

US United States

USAID United States Agency for International Development

USD United States Dollar

USG United States Government

WB World Bank

WBG World Bank Group

WFP World Food Programme

WHO World Health Organisation

http://www.unep.org/

http://unfccc.int/2860.php


Executive Summary

This report was commissioned by Agri-TAF to improve the team’s understanding of the availability of and

modalities of accessing external sources of finance for mainstreaming environment and climate change into

agriculture development in Rwanda. With a number of major investment programmes drawing to a close, the

Ministry is keen to identify and tap into new sources of financial support. Of particular interest are the

international climate funds which provide significant amounts of funding for mitigation and adaptation projects.

Rwanda’s agriculture is well positioned to access these funds on both fronts as it is currently the largest

emitting sector and because farmers are highly vulnerable to climate change due to their high dependence on

rain-fed agriculture and other factors that limit their adaptive capacity such as the prevalence of rural poverty

and land degradation.

Rwanda is eligible to receive funding from most of the climate funds due to its Least Developed Country

(LDC) status. However, the most relevant fund to promote mainstreaming of environment and climate change

concerns (as well as gender and nutrition considerations) into agricultural development in Rwanda is the

Green Climate Fund (GCF). MINIRENA has been accredited as a national entity for the GCF (as well as the

Adaptation Fund but Rwanda has reached the country cap so cannot access this fund at present) and this

fund has direct financing modality so funds are disbursed directly through MINIRENA. The GoR is also

pursuing enhanced direct access (EDA) status which will allow for accredited institutions to receive an

allocation of GCF finance and then make their own decisions on how to program resources. Agriculture is

likely to feature prominently in these plans. There are a number of pipeline GCF projects at various stages of

development. The most advanced is an integrated projects planned for Gicumbi district which includes a tea

resilience component. GCF has released preparatory funding of 1.5 million for a number of feasibility studies.

Agri-TAF also recently prepared a concept note proposing a USD 30 million mainstreaming project for

MINAGRI which has been submitted to the fund for review. This will most likely be developed into a full

proposal during 2016/17.

Rwanda has also been highly successful in accessing other international climate funds (including the

USD934.7 million Least Developed Countries Fund and the USD 3 billion Global Environment Facility), but

MINAGRI’s engagement with these investments and plans has been quite limited so far despite these

investments including significant agricultural components. Currently, the most significant and relevant of these

is the Climate Investment Facility which has approved preparatory funding to develop a Strategic Plan for

Climate Resilience (which includes climate smart agriculture) and an investment plan for a Forest Investment

Programme (which includes agro-forestry). As there are currently no funds available in the CIF to finance the

plans, financing these plans will ultimately depend on GCF funding. Hence as part of the preparatory process,

the respective intermediary organisations, the World Bank and the African Development Bank are planning to

develop two concept notes to seek funding the Green Climate Fund. Going forward, Agri-TAF will work closely

with FONERWA and facilitate close linkages between the sector and the intermediary organisations to ensure

that the planned interventions align with national and sectoral priorities.

Currently, other potential sources of funding for cross cutting issues (including climate, environment and

gender) include:

the USD 300 million Adaptation for Smallholder Agriculture Program (ASAP),

the GEF Trust Fund (Agri-TAF will facilitate closer engagement between MINAGRI and the DG REMA

who serves as the GEF focal point)

the EU’s €316.5 million Global Climate Change Alliance (GCCA)

the NAMA facility (for livestock and fertiliser mitigation actions - Agri-TAF will consult with FONERWA

and MINAGRI to explore the potential for submitting a proposal in October)

At the national level, another source of potential funding for addressing environmental and climate concerns in

agriculture is FONERWA which manages the flow of climate funds in Rwanda. As a national basket fund for

climate and environment, it has funded 31 projects many of which have substantial agriculture components

channelled through districts. MINAGRI and RAB have not directly accessed funding to any great extent


although MINAGRI recently secured financial support (USD 3 million) to pilot the mainstreaming of climate

change into the tea and coffee sub-sectors. The design is being finalised by Agri-TAF and activities started in

September 2016. Agri-TAF is also supporting the development of a proposal following a recent targeted call

for mainstreaming proposals from FONERWA.

In addition, Agri-TAF will monitor the the Adaptation Fund (AF) which recently decided to retain the country

cap for the time being and the Least Developed Countries Fund (LDCF) as it has been accessed in the past

but fund levels are currently depleted so there are currently limited prospects for accessing this fund.

Agri-TAF will also consult with the EU delegation to determine the potential for accessing the EU’s Global

Climate Change Alliance (GCCA) as a potential source of funds for mainstreaming climate change

considerations into sectoral development planning, budgeting, implementation and monitoring and/or

improving knowledge about the effects of climate change, developed appropriate adaptation actions for the

agriculture sector as this is a stated area of interest for the GCCA.

Agri-TAF will also consult with the IFAD programmes to ascertain the potential for an ASAP supported

intervention around one or more of the following areas:

improved land management and gender-sensitive climate resilient agricultural practices and

technologies;

increased availability of water and efficiency of water use for smallholder agriculture production and

processing;

increased human capacity to manage short- and long-term climate risks and reduce losses from

weather-related disasters;

climate-resilient rural infrastructure; and

communication knowledge on Climate Smart Smallholder Agriculture.

Finally, Agri-TAF will support MINAGRI to develop a more coordinated approach to identifying and tracking

climate finance opportunities that would enable it to assess funding availability and target its resource

mobilisation efforts to tap in more effectively to international climate funds. This will involve providing periodic

briefing updates on climate finance opportunities to the PS and DG Planning and involving the Climate and

Environment Specialist in taking over this task.


Report Proper

1 Introduction

This report was commissioned by Agri-TAF to improve the team’s understanding of the availability of and

modalities of accessing external sources of finance for mainstreaming environment and climate change into

agriculture development in Rwanda. It reviews the extent of existing investment in public sector expenditure

on agriculture and explores the range of international climate funds that have emerged in recent years,

highlighting the most appropriate funds in terms of fit with sector priorities, amount of funding available and

accessibility. The findings are the result of a desk study conducted during September 2016 and provides an

updated account of the information drawn from an earlier study prepared for FONERWA in 2015 based on the

recent minutes from Board meetings of the various funds, the fund websites, and research and analysis

posted on the Climate Funds Update website.

2 Current funding situation for the agriculture sector

Rwanda was the first country to sign a Comprehensive Africa Agricultural Development Programme (CAADP)

compact, committing itself to taking actions to generate sustained agricultural growth of 6% per year, including

increasing the share of the state budget allocated to agriculture to 10% per year. Since signing the compact,

the GOR has increased the budget dedicated to agriculture in order to attain this target (although this has

been achieved by including the allocation to other Ministries as well as MINAGRI). The GoR recognises that

public spending cannot cover the full delivery of the PSTA III as outlined in the ASIP II which includes an

enhanced emphasis on inducing private sector investment into the sector. The total private sector cost

envisaged for the implementation of Rwanda's 2nd Agriculture Sector Investment Plan is USD 543 million1.

However, private investment in agriculture is hampered by the shortage of land and the fragmented nature of

land parcels in Rwanda as well as by a lack of financial services and products tailored to agri-business, a

regulatory environment that can be over-burdensome for the private sector and a crowding out effect by public

sector interventions.

As a result, Rwanda continues to rely on significant levels of financial support from its development partners

to support the delivery of PSTA III. With a number of major investment programmes drawing to a close, the

Ministry is keen to identify and tap into new sources of financial support. The BTC investment in seed

production and agricultural extension services as well as AfDB’s Livestock Infrastructure Support Programme,

both significant investments have come to an end. Table 1, below, shows the amount of funding provided by

each of Rwanda’s main development partners in the sector. Details of each investment are included in Annex

1.

Table 1: Agriculture sector projects funded by development partners

Development

partner

Projects Finance Timeframe

Multilaterals

IFAD Project for Rural Income through

Exports (PRICE)

US$ 37.4 million 2011-18

1 ASIP II


Development

partner


Climate-Resilient Post-Harvest and

Agribusiness Support Project (PASP)

US$ 33.9 million

US$ 6.9 million)

2013-18

National Sericulture Centre (NSC) USD 4,301,190 (PRICE +) 2013-18

World Bank Third Phase of the Transformation of

Agriculture Sector Program-for-Results

(PforR) Project for Rwanda

USD 100 million 2014-17

Rwanda Feeder Roads Development

Project

US$ 49 million 2014-2021

Third Rural Sector Support Project

(RSSP3)

US$ 15.90 million 2014-18

Land Husbandry, Water Harvesting and

Hillside Irrigation

USD 35 million 2013-2017

Landscape Approach to Forest

Restoration and Conservation

(LAFREC)

USD 9.53 million (from LDCF) 2014 – 2019

Rwanda Pilot Program for Climate

Resilience2.

USD1.5 million (from the CIF) pipeline

EU Budget support €200 million

AfDB Livestock Infrastructure Support

Programme (LISP)

35.35 million USD (budget

support)

2011- 2015

FAO ASTF Rwanda project 2014-17

NEPAD Gender, Climate Change and

Agriculture Support Programme

(GCCASP)

USD 11,891,659 2016-21

Bilaterals

DFID Programme of Support to Agriculture £38.25 million 2014 - 2019

Improving Market Systems for

Agriculture in Rwanda (IMSAR)

£6,850,758 2015-2021

BTC Support to SPAT II €18,000,000 July 2011 –

June 2016

USAID Rwanda Climate Services for

Agriculture project

Feed the future project USD 30-35 million 2016-2021

2 for preparation of a Strategic Program for Climate Resilience (SPCR) and associated investment plan


Development

partner


SIDA Considering supporting a capacity

building programme

Netherlands Developing a new concept

Recent investments include €200 million in budget support from the EU (the largest investor in the sector and

co-chair of the SWG) and large investments from the World Bank, DFID and USAID. This includes the

USD100 million PforR project which is managed by the World Bank and through which DFID’s £38.25 million

Programme of Support for Agriculture is channelled to support the implementation of the PSTA III. In addition,

the GoR funds two large scale programmes, the one cow per family programme (GRINKA) and the Crop

Intensification Programme (CIP).

Going forward, there is a need to target further support for PSTA III and IV from Rwanda’s development

partners and other sources of finance including some of the international climate funds (see next section). In

particular, cross cutting areas have been under-funded by the ASIP II and as a result have tended to be

neglected in delivering the PSTA III. These are key areas where TA from Agri-TAF will be used to mobilise

additional resources.

3 Rwanda’s access to international climate funds

3.1 Rwanda’s access to international climate funds

International climate finance architecture is complex and evolving fast. There are a number of multilateral

funds including the Climate Investment Funds that channel funding through multilateral agencies such as the

UN agencies and AfDB as well as significant bilateral channels such as the UK International Climate Fund

and Germany's International Climate Initiative. Within the climate finance landscape, funding is generally split

between mitigation and adaptation although some of the larger funds finance both mitigation and adaptation

programmes. For Rwanda’s agriculture sector, both adaptation and mitigation finance are appropriate,

available and accessible as agriculture is an important sector in terms of emissions (the agriculture sector is

currently the largest emitting sector mainly due to emissions from cultivating soils) and due to the high

dependence of most farmers on rain-fed agriculture which creates high vulnerabilities to changes in

temperature and precipitation.

As a Least Developed Country (LDC) and with its high vulnerability to climate change3, Rwanda is eligible to

receive funding from most of the climate funds especially those supporting adaptation which have a strong

bias to disbursing to developing countries. Indeed, it has already had considerable success in accessing

several of these funds. Moreover, MINIRENA has been accredited as a national entity by both the Green

Climate Fund and the Adaptation Fund. These are two important sources of funding because both these funds

offer a direct financing modality. This means that the funds do not have to be channelled through any

intermediary agencies but can be disbursed directly through MINIRENA (the accredited entity) to any number

of executing entities (e.g. MINAGRI, RAB, Districts etc.). It also means that the management fee, typically

10%, usually paid to the intermediary agency is incorporated into programme delivery and management and

project start-up is generally quicker.

Only a small number of funds offer direct finance to national entities which allows developing countries greater

control and ownership over their climate change programming. It requires adherence to strict fiduciary

standards that are internationally recognised including: financial integrity and management, institutional

capacity, and transparency and self-investigative powers. Rwanda was the first African country to meet these

standards and attain accreditation.

3 REMA (2015). Baseline climate change vulnerability index for Rwanda, May 2015.


This first mover advantage resulted from Rwanda’s advanced policy landscape around climate change and

green growth and its commitment to tackling climate change as well as pro-active engagement with the funds

by FONERWA which has enabled the GoR to access preparatory funding for a sizable investment (USD 65

million) from the GCF and secure USD10 million for a climate adaptation project in Nyabihu.

As well as coordinating and leading the GCF accreditation process for target agencies, FONERWA is

currently pursuing enhanced direct access (EDA) status. EDA allows for accredited institutions to receive an

allocation of GCF finance and then make their own decisions on how to program resources. The EDA model

differs from other arrangements, in which finance is only accessible through discrete projects and programs

approved by the GCF board. This would enable the GoR to take forward the readiness programme and

project pipeline that are currently under review by the fund. A key priority is to develop a set of action plans

and a climate-finance ready pipeline of programmes. Agriculture is likely to feature prominently in these plans.

In addition to the GCF and the AF which can be accessed through direct finance, Rwanda has been highly

successful in accessing other international climate funds. The most significant of these is the Climate

Investment Facility which has approved preparatory funding to develop two investment plans and a Strategic

Plan for Climate Resilience through its climate funds: the Scaling-Up Renewable Energy Program for Low

Income Countries (SREP), the Pilot Programme for Climate Resilience (PPCR) and the FIP (Forest

Investment Programme). To date, however, MINAGRI’s engagement with these investments and plans has

been quite limited despite these investments including significant agricultural components. Given that the CIFs

do not offer direct access, it will be important for MINAGRI to work closely with FONERWA in engaging

effectively with the intermediary organisations, the World Bank and the AfDB, to ensure that the planned

interventions align with national and sectoral priorities and are delivered in a timely fashion.

Rwanda also has a good track record of securing funds from a number of other funds including: the Least

Developed Countries Fund (LDCF), the Global Environment Facility (GEF), Adaptation for Smallholder

Agriculture Programme (ASAP) and the EU funded Global Climate Change Alliance (GCCA). These

investments have mostly focused on adaptation investments and all require intermediary organisations

(usually the UN agencies) to broker, develop and implement projects. Some of them also require proposed

projects to demonstrate additional cost reasoning, where grants can only be used for those costs that are

additional to a development baseline and are the incremental cost of adaptation activities (e.g. LDCF, GEF

and ASAP). This requires leveraging co-financing from development partners to pay for the business-as-usual

or baseline part of the project.

3.2 Funds relevant to mainstreaming environment and climate change

concerns into agricultural development in Rwanda

The flow of climate funds in Rwanda is managed by FONERWA (the Fund for Environment and Climate

Change of Rwanda), an affiliate agency of the MINIRENA and national basket fund for climate and

environment. The fund is supported by DFID, KfW, CDKN and GGGI. Since 2013, it has funded 31 projects

many of which have substantial agriculture components. However, MINAGRI and RAB have not featured

significantly in the portfolio to date as most of the funding has been channelled through districts. However,

MINAGRI recently secured financial support (USD 3 million) from FONERWA to pilot the mainstreaming of

climate change into the tea and coffee sub-sectors, two key export crops which are highly sensitive to climate

change. The project will develop an action plan, and deliver capacity building and low regret adaptation and

mitigation interventions, addressing both current and longer-term climate threats. The design is being finalised

by Agri-TAF and activities started in September 2016.

Further to this, FONERWA recently issued a targeted call for mainstreaming proposals and is looking to

support the mainstreaming of climate and environment considerations into key sectors, one of which is

agriculture. DG Planning in MINAGRI has expressed an interest taking forward a mainstreaming proposal

within the Livestock Intensification Programme (LIP). Agri-TAF is currently consulting with the LIP and

providing TA to support the development of a concept (PPD) for submission to FONERWA in mid-October.

As discussed above there are a multitude of international climate funds that support sustainable and climate

smart agriculture. The multilateral funds which are most relevant to Rwanda’s agriculture sector are listed

below:


Green Climate Fund (USD 10.14 billion)

Climate Investment Funds

- Pilot Programme for Climate Resilience (USD 1.2 billion),

- Forest Investment Program (USD 785 million)

- Scaling-Up Renewable Energy Program for Low Income Countries (USD 796 million)

Adaptation for Smallholder Agriculture Program (USD 300 million).

GEF Trust Fund (GEF 6 - 2015-2018) (USD 3 billion)

Least Developed Countries Fund (USD 872.63 million),

Adaptation Fund (USD 642 million),

Global Climate Change Alliance (USD 356.5 million)

Least Developed Countries Fund

Special Climate Change Fund

Details of the above climate funds, their relevance to Rwanda’s agriculture sector and existing programmes

supported provided by each fund are provided in Table 1. Of the funds listed above, Rwanda has accessed or

is in the process of accessing finance from all of them except the Special Climate Change Fund. However, as

there is no systematic tracking of project applications, climate expenditure and opportunities, it is difficult for

the GoR to effectively coordinate its adaptation and mitigation plans and programmes with the added potential

for duplicating interventions or creating programming gaps particularly in delivering the Green Growth Climate

Resilient Strategy.

Currently, the most relevant funds for Rwanda in terms of meeting the financing needs for future environment

and climate change mainstreaming programmes are the Green Climate Fund and the CIFs. The largest

source of climate finance is likely to be the USD 10.14 billion Green Climate Fund which has attracted

significant contributions and now that it is operational it is likely to supersede some of the existing funds which

have sunset clauses that only allow them to operate until new climate finance mechanisms come into force.

Unlike the CIF’s, the GCF is also a direct finance fund and it therefore represents the most flexible and

significant source of climate finance for Rwanda. So far, one full proposal (for an integrated climate change

project in Gicumbi district) and has been submitted to the fund by the GoR and the fund has released USD 1.5

million for preparatory studies for the Gicumbi project design. In addition, Agri-TAF recently prepared a

concept note proposing a USD 30 million mainstreaming project for MINAGRI (entitled “Mainstreaming climate

smart planning and implementation into agricultural development”) which has been submitted to the fund for

review. This will most likely be developed into a full proposal during 2016/17.

The Adaptation for Smallholder Agriculture Program (ASAP) is another potential source of climate

adaptation finance. As the ASAP provides co-financing targeted specifically at scaling up and integrating

climate change adaptation in smallholder development programmes, it would be important to identify a

suitable baseline project with IFAD‘s existing country programmes. The funding priorities of ASAP, however,

are strongly aligned with addressing the cross cutting issues identified by Agri-TAF including:

1. improved land management and gender-sensitive climate resilient agricultural practices and technologies;

2. increased availability of water and efficiency of water use for smallholder agriculture production and

processing;

3. increased human capacity to manage short- and long-term climate risks and reduce losses from weather-

related disasters;

4. climate-resilient rural infrastructure; and

5. communication knowledge on Climate Smart Smallholder Agriculture.

The GEF Trust Fund is another potential source of significant funding (USD4.43 billion) for addressing

environmental and climate change concerns (both mitigation and adaptation). The GEF is an international

financial instrument that funds the additional costs incurred by developing countries in fulfilling multilateral

environmental agreements that generate global benefits. The fund supports climate smart agriculture and

many of the proposed interventions recommended by the EU funded 2011 Strategic Environmental


Assessment and the GGCRS including: agro-ecological methods and approaches including conservation

agriculture, agroforestry, etc.; integrated watershed management, integrated approaches to soil fertility and

water management; and diversification of crops and livestock production systems through sustainable land

management. The GEF Trust Fund applies additional cost reasoning so a baseline project would be needed

to demonstrate that GEF funds would cover the additional and incremental costs associated with addressing

land degradation and climate mitigation. Accessing funds requires working through one of GEF’s 18 Partner

Agencies4 with the DG REMA who is the GEF focal point in Rwanda.

Another potential source of funds for the sector is the EU’s Global Climate Change Alliance (GCCA) as it is

one of the largest climate initiatives in the world (capitalised with €316.5 million) and Rwanda is eligible for

GCCA+ funds. Accessing funding requires the participation in a climate vulnerability needs assessment which

takes into account the proportion of that country’s population deemed at risk from the effects of climate

change. The assessment specifically considers the country’s agricultural sector and estimates the country’s

adaptive capacity, using the United Nations’ Human Development Index as a source. Funds are then

allocated to countries based on availability of resources and on population figures. Training and technical

assistance services related to climate change are also available for government agencies of ACP countries,

through the GCCA's Intra-ACP Programme. Rwanda has already accessed GCCA funding (USD 5.72 million)

through budget support for the delivery of the land tenure reform process which was completed in 2013.

However, at present, there are no national programmes active in Rwanda although the GCCA supports a two

regional initiatives that include Rwanda.

In terms of mitigating emissions from the agriculture sector, the NAMA facility could be a potential source of

funds. NAMAs are seen as concrete measures to achieve the objectives of Nationally Determined

Contributions (NDCs) that were adopted through the Paris Agreement at COP21 in December 2015. There

would be strong eligibility because in Rwanda’s Nationally Appropriate Mitigation Actions (NAMA), the

agriculture sector was found to represent a high portion of national GHG emissions. Two NAMA scenarios

have been proposed for the sector: livestock and fertiliser (see table below for details of proposed NAMA

activities). A funding opportunity currently exists as there was a call for proposals in July which closes at the

end of October and a 3-5 year project with a budget of 2-10 million would be feasible. The proposed project

would need to include a mix of regulatory and financial interventions and MINAGRI could be the Implementing

Partner (IPs) as the key national partners (e.g. a Ministry) for the implementation of the NSP as long as it has

the required national mandate to implement and operate NAMAs. However, because NAMA Facility funding is

not provided directly to partner government institutions such as ministries, an eligible NAMA Support

Organisations (NSOs) endorsed by the national government would have to be identified as the contractual

partner of the NAMA Facility and recipient of funding. Both national5 and international6 entities are eligible as

NSOs. The application process is through submission of a short outline (which can be prepared by the

Ministry as long as a co-applicant is included as the NSO) which, if approved is followed by a detailed

preparation phase (where a grant is provided) over 6-18 months.

Funds that have already been accessed by GoR or where Rwanda has reached its country cap for the

present can be monitored in case these caps are removed or adjusted once these funds receive more

contributions. In particular, this would include the Adaptation Fund (AF) which recently decided to retain the

country cap for the time being but the board agreed this decision would be reviewed at a later date. Another

fund to track is the Least Developed Countries Fund (LDCF) as it has been accessed in the past but fund

levels are currently depleted so there are currently limited prospects for accessing this fund.

4 The most commonly used partner agencies used in Rwanda are UNDP, UNEP, World Bank and AfDB.

5 National entities can include: development banks, development funds, public utilities, public agencies, foundations,

national non-governmental organisations (NGOs), etc.

6 International entities include: regional or international development banks, United Nations (UN) agencies, bilateral and

multilateral development agencies, international non- governmental organisations (INGOs), international foundations, etc.


Table 2: List of multilateral climate funds and their relevance to Rwanda

Name of

fund

Details Relevance to mainstreaming in

agriculture

Planned and ongoing projects

Green

Climate Fund

The USD 10.14 billion GCF is a direct

access fund through accredited national and

sub-national implementing entities and

intermediaries. Grants and concessional

loans are available. It also includes a Private

Sector Facility. Countries can access the

GCF both through MDBs and UN agencies.

Allocation will balance funding for mitigation

and adaptation measures and 50% of the

adaptation funding is ring-fenced for the

most vulnerable countries (LDCs, SIDS and

African States). The fund made its first round

of approvals in 2015. The GCF provides up

to USD 100 million for each project.

REMA is the National Designated Authority

(NDA) and the main point of contact for the

Fund. MINIRENA has been approved as an

accredited entity. FONERWA will also apply

for accreditation. FONERWA has accessed

readiness support to strengthen the

institutional capacity for country coordination

and multi-stakeholder consultation

mechanisms as needed, as well as to

prepare a country programme and project

pipelines. Rwanda is also in the process of

being considered for enhanced direct access

(EDA) to the GCF. EDA allows for accredited

institutions to receive an allocation of GCF

finance and then make their own decisions

on how to program resources. The EDA

model differs from other arrangements, in

which finance is only accessible through

discrete projects and programs approved by

As the largest climate fund in the world, the

GCF is likely to be a significant source of

funding that can be accessed by Rwanda.

A mainstreaming project would fit well within

the GCF’s investment criteria. Strong

alignment with the fund’s investment criteria

would be achieved if the proposed project:

Contributed to increased climate-resilient

sustainable development.

Strengthened knowledge, collective

learning processes, or institutions

Was innovative, sustainable, mobilised

other actors and was cost effective

Maximised environmental, social, health

and economic impacts and reduce

gender inequality.

Targeted vulnerable groups

Demonstrated extensive stakeholder

consultation

GCF (under its PPF facility) has approved a

USD 1.5 million disbursement for the

preparation of detailed studies to support the

design of a project in Gicumbi District. This

includes an agricultural component to

strengthen the resilience of tea production

from the Mulindi plantation.

More recently, two concepts (a green city

pilot and an agriculture mainstreaming

project) were recently submitted to the GCF.

The mainstreaming concept was prepared by

Agri-TAF and the initial feedback from the

fund was positive.

There is good potential for Rwanda to access

significant levels of funding in grants and

concessional loans for adaptation and

mitigation programmes in both the private

and public sector. Close liaison will be

required with the key focal points for this fund

FONERWA and MINIRENA.


Name of

fund


agriculture


the GCF board.

Pilot Program

for Climate

Resilience

One of the Climate Investment Funds (CIFs)

established in 2008, administered by the

World Bank, and operated in partnership with

regional development banks. Currently, the

largest adaptation fund in the world (USD 1.2

billion), the PPCR focuses on a smaller

number of countries and transactions to

maximize impact and possibility for

replication. It is managed by the World Bank

and active in 9 pilot countries and 2 regional

programs, which includes 9 small island

nations. As of end December 2015, donors

had pledged a total of $1.2 billion for PPCR.

The PPCR adopts the CIFs 'sunset clause'

which enables closure of funds once a new

financial architecture becomes effective

under the UNFCCC regime.

The objectives of the PPCR are to assist

developing countries to integrate climate

resilience into core development planning for

transformation at scale. This could include

mainstreaming climate resilience into

sectoral and cross-sectoral investment,

including urban development/ infrastructure,

agriculture and food security, land and

ecosystems, policy, institutions and policies

building on the Rwanda Economic

Development and Poverty Reduction

Strategy, the Green Growth and Climate

Resilience Strategy, and other existing

efforts.

Under the ‘sunset clause’ the CIFs are due

to close once a new climate finance

The PPCR is designed to provide

programmatic finance for climate resilient

national development plans with four main

objectives:

1. Pilot and demonstrate approaches for

integration of climate risk and resilience

into development policies and planning;

2. Strengthen capacities at the national

levels to integrate climate resilience into

development planning;

3. Scale-up and leverage climate resilient

investment, building on other on-going

initiatives; and

4. Enable learning-by-doing and sharing of

lessons at country, regional and global

levels.

Both the PPCR and the FIP are relevant to

mainstreaming in agriculture as the SPCR is

likely to include a significant climate smart

agriculture component and the FIP IP will

cover agro-forestry.

Important for MINAGRI and RAB to engage

in the preparation of the SPCR. Agri-TAF

can play a facilitating role in this respect with

MINIRENA (leading the process) and

FONERWA (the executing entity for the

SPCR).

FONERWA submitted an EOI in Feb 2015

that proposed to focus resilience investments

around a broad IWRM theme, as well as

climate information systems and disaster risk

management.

Rwanda’s Expressions of Interest (EOI) to

develop the Strategic Program for Climate

Resilience (SPCR) for the PPCR and an

Investment Plan (IP) for the FIP were both

approved by the Climate Investment Fund

(CIF) in March 2015. The approval triggered

the release of US$1.5 million for Rwanda to

prepare an SPCR. The grants are expected

to be executed by the Government of

Rwanda. A scoping mission took place in

Nov 2015. As there are currently no PPCR

resources to implement the SPCR, the

Government is expected to seek financial

resources for implementation from the Green

Climate Fund and other available resources.

To support this, the AfDB and World Bank

intend to develop two project concept notes

to be submitted to various donor sources for

operational funding.

MINIRENA will be the National Implementing

Agency for both, the PPCR and FIP

processes, and will coordinate these with the

technical backstopping from the thematic

working groups that already exist within the

government. The process will be led by

MINIRENA and will: i) engage the same

consultants’ team, ii) involve common joint

missions of the MDBs, and iii) both


Name of

fund


agriculture


architecture is effective under the United

Nations Framework Convention on Climate

Change (UNFCCC), through a mechanism

such as the Green Climate Fund (GCF).

investment plans will be validated through

the same consultation of stakeholders which

will be financed by the PPCR resources. In

addition, FONERWA and RNRA have been

confirmed to be the Executing Agencies for

the PPCR and IP, respectively, and

preparation grants will be channeled through

these agencies accordingly.

The World Bank will be the lead for the

SPCR preparation process.

Forest

Investment

Program




regional development banks. Focuses on

mitigation – REDD. As of end December

2015, donors had pledged a total of $775

million for FIP.

The aim of the FIP is to support developing

country efforts to reduce emissions from

deforestation and forest degradation and

promote sustainable forest management and

enhancement of forest carbon stocks

(REDD+). Activities supported by the FIP

include:

Investments that build institutional

capacity, forest governance and

information;

Investments in forest mitigation efforts,

including forest ecosystem services; and

Investments outside the forest sector

necessary to reduce the pressure on

forests such as alternative livelihood and

poverty reduction opportunities.

Both the PPCR and the FIP are relevant to

mainstreaming in agriculture as the SPCR is

likely to include a significant climate smart

agriculture component and the FIP IP will

cover agro-forestry through the development

of an agroforestry action plan, along with

analyses of national forest policies and

strategies, deforestation and forest

degradation status, and potential mitigation

and adaptation measures.

Important for MINAGRI and RAB to engage

in the preparation of the agro-forestry

component of the FIP. Agri-TAF can play a

facilitating role in this respect with

MINIRENA (leading the process) and RNRA

(the executing entity for the FIP).

Rwanda’s Expressions of Interest (EOI) to

develop the Strategic Program for Climate

Resilience (SPCR) for the PPCR and an

Investment Plan (IP) for the FIP were both

approved by the Climate Investment Fund

(CIF) in March 2015. The approval triggered

the release of US$250,000 to prepare the

Investment Plan. The grants are expected to

be executed by the Government of Rwanda.

A scoping mission took place in Nov 2015.

As there are currently no FIP resources to

implement the investment plan, the

Government is expected to seek financial

resources for implementation from the Green

Climate Fund and other available resources.

To support this, the AfDB and World Bank

intend to develop two project concept notes

to be submitted to various donor sources for

operational funding.

MINIRENA will be the National Implementing

Agency for both, the PPCR and FIP

processes, and will coordinate these with the

technical backstopping from the thematic

working groups that already exist within the


Name of

fund


agriculture


FIP investments also mainstream climate

resilience considerations and contribute to

multiple co-benefits such as biodiversity

conservation, protection of the rights of

indigenous peoples and local communities,

and poverty reduction through rural

livelihoods enhancements.







government. The process will be led by

MINIRENA and will: i) engage the same

consultants’ team, ii) involve common joint

missions of the MDBs, and iii) both

investment plans will be validated through

the same consultation of stakeholders which

will be financed by the PPCR resources. In

addition, FONERWA and RNRA have been

confirmed to be the Executing Agencies for

the PPCR and IP, respectively, and

preparation grants will be channeled through

these agencies accordingly.

The AfDB will lead the IP preparation

process.

Scaling-Up

Renewable

Energy

Program for

Low Income

Countries

(SREP)




regional development banks – focuses on

mitigation. The SREP was established to

scale up the deployment of renewable

energy solutions in the world’s poorest

countries to increase energy access and

economic opportunities. As of end December

2015, donors had pledged a total of $787

million for SREP.







There are a number of implications and

potential benefits from the SREP investment

primarily through provision of solar power in

rural areas that could be used for agro-

processing and irrigation and the possibility

of using agricultural waste to generate power

for mini-grids.

Agri-TAF can liaise initially with FONERWA

and then MININFRA (Robert Nyavumba,

Energy Division Manager) to assess the

potential for the agriculture sector to benefit

from the investment.

Rwanda was recently selected as one of 14

new pilot countries to participate in the

SREP. GoR is currently developing an

Investment Plan to scale up renewable

energy generation and facilitate the

development of the country’s sustainable

energy agenda. SREP funding of $50 million

(USD) will help develop financially

sustainable long-term markets for the private

sector provision of off-grid electricity services

in the East African country. The plan is

designed to help Rwanda deliver its target to

connect 48% of the households to the grid

and to offer 22% sustainable off-grid

solutions, including solar home systems and

mini-grid connections

Scoping missions took place in June and

December 2015 and up to USD 300,000 will

be provided to develop a full investment plan

with the MDB. The plan includes three main


Name of

fund


agriculture


areas of support to be developed over the

coming months:

1. Stand-alone solar PV systems: to build

markets and private sector capabilities to

develop stand-alone solar PV systems,

raising solar PV product standards and

promoting dissemination of systems that

are certified to international quality

standards.

2. Mini-grids: to finance mini-grid projects,

and to demonstrate the benefits to local

communities and the commercial and

technical viability of business models to

trigger further market growth.

3. Technical assistance/enabling

environment: to address market barriers

through market development including

awareness campaigns, improving

technical standards of equipment,

addressing training and other technical

capacity needs in the supply-chain,

increasing institutional and regulatory

capacity, and assisting local financial

institutions in appraising renewable

energy projects.

Adaptation for

Smallholder

Agriculture

Program

Launched in 2012 by the International Fund

for Agriculture and Development, the

Adaptation for Smallholder Agriculture

Programme (ASAP) channels climate

adaptation finance to smallholder farmers so

they can access the information, tools and

technologies to build their resilience to

climate change. The fund has so far

disbursed more than USD 300 million and

There is strong alignment of sector priorities

with funding requirements. Proposed

interventions should contribute to the fund’s

indicators:

1. number of poor smallholder household

members whose climate resilience has

been increased because of ASAP,

disaggregated by sex,

Rwanda currently has one project supported

by this fund: Post-harvest Agribusiness

Support Project. ASAP provides USD

7million in co-financing to a USD3.9 million

investment by IFAD. This project ends in

2018.


Name of

fund


agriculture


aims to deliver USD 150 million per year.

ASAP provides co-financing targeted

specifically at scaling up and integrating

climate change adaptation in smallholder

development programmes.

ASAP has 5 outcomes:

1. improved land management and gender-

sensitive climate resilient agricultural

practices and technologies;

2. increased availability of water and

efficiency of water use for smallholder

agriculture production and processing;

3. increased human capacity to manage

short- and long-term climate risks and

reduce losses from weather-related

disasters;

4. rural infrastructure made climate-

resilient; and

5. knowledge on Climate Smart

Smallholder Agriculture documented and

disseminated.

IFAD‘s country programmes bid for funds on

a case-by-case basis and lead on

identification, development and

implementation of ASAP co-financing.

Projects are proposed via Regional Division

Directors. Government counterparts

including, where possible, gender experts

and representatives of marginalised groups,

are intended to be in the lead.

2. size of the overall resulting investment,

3. project leverage ratio of ASAP versus

non-ASAP financing,

4. tonnes of GHG emissions (CO2e)

avoided and/or sequestered,

5. increase in number of non-invasive on-

farm plant species per smallholder farm

supported,

6. increase in hectares of land managed

under climate-resilient practices,

7. percentage change in water use

efficiency by men and women,

8. number of community groups including

women‘s groups involved in ENRM

and/or DRR formed or strengthened,

9. value of new or existing rural

infrastructure made climate-resilient, and

10. number of international and country

dialogues to which the project would

make an active contribution.

GEF Trust

Fund -

Climate

Under the sixth replenishment (2015-2018)

30 donor countries pledged USD4.43 billion

over five focal areas.

Two focal areas are relevant to agriculture:

climate change mitigation (USD 1260

million); and land degradation (USD 431

There are currently 4 projects supported by

the GEF Trust Fund in Rwanda.

1. Increasing the Capacity of Vulnerable


Name of

fund


agriculture


Change focal

area (GEF 6)

Accessing funds requires working through

one of GEF’s 18 Partner Agencies. The most

commonly used partner agencies used in

Rwanda are UNDP, UNEP, World Bank and

AfDB. The Operational Focal Point must

provide a written endorsement for all national

projects. The Operational Focal Point also

decides which Agency would be best suited

to develop and implement the project idea.

The DG REMA is currently the GEF focal

point in Rwanda.

The GEF provides financing to various types

of projects ranging from several thousands to

several million dollars from the GEF Trust

Fund (GEFTF), Special Climate Change

Fund (SCCF) and Least Developed

Countries Fund (LDCF). There are four types

of projects: full-sized projects, medium-sized

projects, enabling activities and

programmatic approaches, briefly described

below.

Full-sized Projects (FSPs) - More than US$2

million. Governments decide on the

executing agency (e.g. civil society

organizations, private sector companies,

research institutions). The GEF Council

approves FSP concepts, which are then fully

developed over 18 months.

Medium-sized Projects (MSPs) - Up to US$2

million. MSPs offer opportunities for a broad

range of programming that is typically

smaller in scale than full-sized projects. The

approval process is simpler, allowing them to

be designed and executed more quickly and

million). Under climate change mitigation,

Programme 4 supports climate smart

agriculture. Under the land degradation focal

area, there are a number of programmes that

are relevant to agriculture. Interventions that

would align well with funding priorities

include:

1. Agro-ecological methods and

approaches including conservation

agriculture, agroforestry, etc.;

2. Strengthening community-based

agricultural management;

3. Integrated watershed management,

including wetlands;

4. Implementing integrated approaches to

soil fertility and water management.

5. Agricultural land management systems

that are resilient to climate shocks

(drought, flood).

6. Improving management of impacts of

climate change on agricultural lands

(including water availability) to enhance

agro-ecosystem resilience and manage

risks.

7. Diversification of crops and livestock

production systems through SLM.

8. Mitigating impacts of climate change on

agricultural lands using SLM (e.g. water

management practices) to enhance

agro-ecosystem resilience and manage

risks

9. Applying SLM strategies and other

ecosystem-based climate adaptation

Rwandan Communities to Adapt to

Adverse Effects of Climate Change:

Livelihood Diversification and Investment

in Rural Infrastructures. Executing

agency – EWSA. USD 8.8 million (from

LDCF).

2. Enabling Activities to Review and Update

the National Implementation Plan for the

Stockholm Convention on Persistent

Organic Pollutants (POPs). Executing

agency – REMA. USD 180,000 (from

GEF Trust Fund)

3. Building Resilience of Communities

Living in Degraded Forests, Savannahs

and Wetlands of Rwanda Through an

Ecosystem Management Approach.

Executing agencies - REMA, MINIRENA,

MINAGRI. USD5.5 million (from LDCF)

4. Landscape Approach to Forest

Restoration and Conservation

(LAFREC). Executing agency – REMA.

USD 9.5 million (from Multi-Trust Fund)

In addition, there are two pipeline projects

awaiting approval:

1. Forest Landscape Restoration in the

Mayaga Region. REMA, Gisagara,

Ruhango, Nyanza and Kamonyi Districts.

USD 6.3 million (from GEF Trust Fund).

2. Building the Capacity of Rwanda’s

Government to advance the National

Adaptation Planning process. REMA.

USD 6 million (from LDCF).


Name of

fund


agriculture


efficiently.

Programmatic Approaches (PAs). Programs

are a strategic combination of FSPs and

MSPs with a common focus to build upon or

complement one another. In this way, they

can produce results not possible through a

single project. Programs maximise the

impact of GEF resources by securing a

larger scale and sustained impact on the

global environment. They do this by

implementing medium- to long-term

strategies for achieving specific global

environmental objectives consistent with the

national or regional strategies and plans of

recipient countries. There are two types of

programs that may be implemented under

the programmatic approach modality:

thematic programs and geographical

programs (country or regional).

strategies for drought mitigation in

drylands.

10. Applying innovative financial and market

instruments (e.g. carbon finance with

public and private sector partners) to

implement SLM practices that reduce

GHG emissions and increase

sequestration of carbon on smallholder

farms.

Global

Climate

Change

Alliance

The Global Climate Change Alliance (GCCA)

is a European Union initiative that focuses on

Least Developed Countries and Small Island

Development States as well as African

countries affected by drought, desertification

and flooding. The Fund set up in 2007 was

capitalised with €316.5 million (USD 356.5

million) between 2008 and 2014 making it

one of the largest climate initiatives in the

world. Funds are allocated based on

population figures and on availability of

funds.

There are a number of funding modalities

used by GCCA including: projects (77%),

sector budget support (8%), general budget

Two of the five priority areas are relevant to

agriculture:

mainstreaming climate change into

poverty reduction and development

strategies,

adaptation, building on the National

Adaptation Programmes of Action

(NAPAs) and other national plans.

Good alignment would be achieved if a

proposed request for financial support would

be used to:

integrate climate change considerations

into sectoral development planning,

budgeting, implementation and

In the past, Rwanda has accessed GCCA

funding through budget support (USD 5.72

million) for the delivery of the land tenure

reform process which was completed in

2013. There are currently no national

programmes active in Rwanda. However, the

GCCA supports a two regional initiatives that

include Rwanda.

1. Programme on Climate Change

Adaptation and Mitigation in the

COMESA-EAC-SADC Region which

seeks to build successful adaptation and

mitigation actions with smallholder

famers across Eastern and Southern

Africa. Part of the support to Rwanda


Name of

fund


agriculture


support (8%) and sector policy support

programme (8%). Training and technical

assistance services related to climate

change are also available for government

agencies of ACP countries, through the

GCCA's Intra-ACP Programme. Typical

amounts available range from €2-10 million.

As an LDC, Rwanda is eligible for GCCA+

funds. To receive funds, a country must

participate in a needs assessment to

understand its vulnerability to climate

change. This assessment will also take into

account the proportion of that country’s

population deemed at risk from the effects of

climate change.

The assessment specifically considers the

country’s agricultural sector and estimates

the country’s adaptive capacity, using the

United Nations’ Human Development Index

as a source. Finally, each country is

assessed on how engaged they are in the

dialogue on climate change. Governments

must also express an interest in receiving

support from the GCCA+. Funds are then

allocated to countries based on availability of

resources and on population figures.

monitoring.

improve knowledge about the effects of

climate change, developed appropriate

adaptation actions for the agriculture

sector to reduce the vulnerability of the

population to the impacts of climate

change.

There is also scope to access the GCCA’s

TA service for project identification or

formulation, climate funding requirements

and access to funds, capacity building,

training and workshops, curriculum

development, policy development, technical

advice, and other activities related to climate

change.

included support to design a climate

smart agriculture Investment Framework

(including climate proofing the National

Agriculture Investment Plan).

2. GCCA Intra-ACP Climate for

Development in Africa (ClimDev)

Programme which has supported a

climate observation network in Rwanda

through the Enhancing National Climate

Services (ENACTS) which is an

integrated platform aimed at accelerating

efforts to improve the availability, access

and use of climate information at the

national level in African countries.

NAMA Facility The NAMA Facility is a multi-donor fund

established by Germany (BMUB) and UK

(BEIS) in 2013 joined by Denmark (EFKM,

MFA) and the European Commission in 2015

as additional donors. It was established with

the objective to provide financial support to

developing countries and emerging

economies that show leadership on tackling

There is good alignment of proposed

NAMAs for the sector with the aims of this

fund. A current funding opportunity exists a

recent call was issued in July with a deadline

of 31 Oct. 2016.

The proposed project would be between

EUR 5-20m over 3-5 years and would need

to include both regulatory and financial

None so far.


Name of

fund


agriculture


climate change and want to implement

transformational country-led NAMAs within

the global mitigation architecture in the short-

and mid- term.

Its aim is to support developing countries

and emerging economies in implementing

ambitious actions to mitigate greenhouse

gas emissions (Nationally Appropriate

Mitigation Actions, NAMAs). NAMAs can

function as an important vehicle to

implement nationally determined

contributions (NDCs) under the Paris

Agreement. The total funding available

through the NAMA Facility since its inception

is EUR 262 m and in 3 Calls, 14 projects

have been selected so far. BMUB and BEIS

have committed up to EUR 60 m of

additional funding. Calls are open and

competitive. Projects must have an

implementation period of 3-5 years and a

budget of EUR 5-20m.

The NAMA Facility emphasises a mix of

different types of interventions - in particular

regulatory and financial ones – to trigger

more climate-friendly behaviour and

consumption and production methods in

developing countries.

Projects are implemented by NAMA Support

Organisations (NSOs), qualified legal

entities, endorsed by the national

government to ensure the implementation.

NAMA Facility funding is not provided

directly to partner government institutions

such as ministries, so NSOs are the

contractual partners of the NAMA Facility

interventions. Two potential areas of focus

(that correspond closely with the proposed

NAMA scenarios) are livestock and

fertilisers.

A NAMA livestock intervention would include

a collective approach to small groups of

farmers, building community husbandry

centres to produce the cows provided to

individual families in the Grinka and other

livestock programs along with collecting

manure from larger number of animals in

community based programs (schools,

collectives, communities) for biogas

digesters.

To improve the fertilizer sector, NAMA

activities would include:

Improved fertilizer management and

application

Establish cooperative lime grinding

facilities to enhance soil absorption

Reduce or eliminate vertical burning of

lime for agriculture

Improve irrigation

Reduce erosion

Increase renewable energy (solar water

pumps, charging stations, lighting)

Available community grinding operations

moved to private sector

Encourage more independent and small

scale lime mining

Promote village and regional distribution

centre(s) development


Name of

fund


agriculture


and recipients of funding. Both national7 and

international8 entities are eligible as NSOs.

Implementing Partners (IPs) are the key

national partners (e.g. a Ministry) for the

implementation of the NSP.

IPs are expected to have the required

national mandate to implement and operate

NAMAs and should be formally linked with

the NSO. The application process is through

submission of a short outline (which can be

prepared by the Ministry as long as a co-

applicant is included as the NSO) which, if

approved is followed by a detailed

preparation phase (where a grant is

provided) over 6-18 months.

Adaptation

Fund

Established in 2009 and financed through a

2% levy on the sale of emission credits from

the Clean Development Mechanism of the

Kyoto Protocol, the AF was established

Parties to assist developing countries that

are particularly vulnerable to the adverse

effects of climate change to meet the costs

of adaptation in form of concrete adaptation

projects and programmes.

Operational since 2009, total revenue to the

Fund was US$ 539.1 million (as off the end

of 2015), including US$ 195.8 million from

CER sales, US$ 343.4 million from

The fund currently applies a USD 10 million

country funding cap due to a lack of funds.

Therefore, Rwanda’s accredited entity

MINIRENA is not eligible to submit another

proposal until this cap is lifted. However,

funds can be accessed through regional

projects implemented by Mutilateral

Implementing Entities. Currently, there is

limited scope to access the AF until the

country cap is raised.

So far, due to the country cap only one

project has been funded through the NIE.

This is a USD 10 million grant for: Increasing

the adaptive capacity of natural systems and

rural communities, living in exposed areas of

North Western Rwanda, to climate change

impacts. The project is currently under

implementation by RNRA.

A proposed regional US$ 5,000,000 project

concept submitted by the United Nations

Environment Programme has been approved

by the AF Board: Adapting to Climate

Change in Lake Victoria Basin (Burundi,

7 National entities can include: development banks, development funds, public utilities, public agencies, foundations, national non-governmental organisations (NGOs), etc.

8 International entities include: regional or international development banks, United Nations (UN) agencies, bilateral and multilateral development agencies, international non-

governmental organisations (INGOs), international foundations, etc.


Name of

fund


agriculture


donations, and US$ 4.3 million from

investment income generated by the trustee.

Funds available for new project and

programme approvals had amounted to US$

177.7 million at year-end 2015.

However, the low price of carbon and the

lack of donations to the fund has limited its

capitalisation. The AF is currently in

discussion with the GCF on a proposal to

identify opportunities for the GCF to co-

finance projects and programmes with the

Global Environment Facility, the Adaptation

Fund or Multilateral Development Banks.

The AF pioneered direct access to finance

for developing countries through National

Implementing Entities that are able to meet

agreed fiduciary standards, as opposed to

working through UN agencies or Multilateral

Development Banks (MDBs) as multilateral

implementing agencies. Managed by the

GEF. MINIRENA is the accredited NDA for

Rwanda.

Kenya, Rwanda, Tanzania, Uganda). A

Project Formulation Grant of US$ 80,000 has

been awarded for development of the full

proposal.

Least

Developed

Countries

Fund

Established in 2002 and managed by the

GEF, the LDCF is one of the largest funds

available for adaptation and has approved

the largest volume of adaptation finance for

Sub-Sahara Africa (around USD 1 billion). As

of June 30, 2015, the total amount pledged

was $934.7 million. Of this, payments

amounting to $929.1 million have been

received. However, the demand for LDCF

resources considerably exceeds the funds

available for new approvals. As at June 30,

2015, there were USD 10.5 million available

LDCF funding could be used for adaptation

activities in the agriculture sector. However,

the lack of funds in the LDCF means that it

has limited capacity at present to fund new

projects.

So far Rwanda has had 2 projects funded by

the LDCF totalling USD 14.3 million.

1. Increasing the Capacity of Vulnerable

Rwandan Communities to Adapt to

Adverse Effects of Climate Change:

Livelihood Diversification and Investment

in Rural Infrastructures. The executing

entity is EWSA and partner agency is

AfDB. USD 8.8 million. Approved May

2016.

2. Building Resilience of Communities

Living in Degraded Forests, Savannahs


Name of

fund


agriculture


for new funding approvals. Each LDC can

access up to $30 million from the LDCF in

accordance with the principle of equitable

access.

To qualify for LDCF (and SCCF) funding, the

proposals must demonstrate additional cost

reasoning, that is the grants can only be

used for those costs that are additional to a

development baseline and are the

incremental cost of adaptation activities. It

relies on co-financing from development

partners to pay for the business-as-usual

part of the project.

The funds can be accessed by submitting a

standard 4 page Project Identification Form

(PIF) through one of GEF agencies9. In fact

the GEF Agency prepares the PIF with the

Operational Focal Points (OFP)10.

and Wetlands of Rwanda Through an

Ecosystem Management Approach. The

executing entities are REMA,

MINIRENA, MINAGRI and partner

agency is UNEP. USD 5.5 million.

Approved Nov 2015.

In addition, one project awaits approval by

the fund:

1. Building the Capacity of Rwanda’s

Government to advance the National

Adaptation Planning process. The

executing entity is REMA and partner

agency is UNEP. USD 6 million.

Received by GEF Secretariat 29 Sep

2014.

Special

Climate

Change Fund

Established in 2002 and managed by the

GEF, the SCCF supports national adaptation

plan development and their implementation,

although largely through smaller scale

projects (with a country ceiling for funding of

USD 20 million). As of June 30, 2015, the

total amount pledged was $349.1 million.

The SCCF has approved USD 351.2 million

since its inception across 90 countries. Net

SCCF funding could be used for adaptation

activities in the agriculture sector. However,

the lack of funds in the SCCF means that it

has limited capacity at present to fund new

projects.

So far Rwanda has not accessed the SCCF.

There is limited potential to access funding

as the fund capitalisation does not fully cover

existing priority concepts received by the

fund.

9 GEF develops its projects through ten Implementing Agencies: the UNDP, UNEP the World Bank, the AfDB, the ADB, the EBRD, the IAD, the IFAD, the FAO, and the

UNIDO.

10 designated by each country to receive GEF funding, be responsible for operational aspects of GEF activities such as, endorsing project proposals to affirm that they are

consistent with national plans and priorities and facilitating GEF coordination, integration, and consultation at the country level


Name of

fund


agriculture


funds available for amount to just $4.3

million. The World Bank is the Trustee and

Administrating Unit of the SREP.

The present Strategy encompasses

adaptation programming under two windows;

the SCCF Adaptation Program (SCCF-A),

and the Program for Technology Transfer

(SCCF-B). The SCCF is open to all

vulnerable developing countries.


Although most counties have opted to channel finance through the multilateral funds, there are a number of

bilateral funds that are significant in terms of the funding available. These include:

UK’s International Climate Fund (GBP 3.87 billion or USD 6.02 billion),

Germany’s International Climate Initiative (USD 2.8 billion), and

Norway's International Climate and Forest Initiative (NICFI) (has pledged up to USD$517 million per

year).

These are described in Table 2 below. Germany’s International Climate Initiative (ICI) and the UK’s

International Climate Fund contribute significant sources of bilateral finance. Accessing ICI funds is contingent

on receiving a formal request for proposals from the German Government representative (BMU) in country

and the project must be integrated into the national strategy.

Table 3:

Name of fund Details Planned and ongoing projects

Bilateral

Funding

UK's

International

Climate Fund

Established by the UK Government in 2011, the

GBP 3.87 billion ICF has channelled the

majority of its funds through dedicated

multilateral funds, particularly the CIFs, but is in

the process of revising this strategy. Funds

Adaptation, Mitigation - general, Mitigation –

REDD. ICF funds 33% of DFID’s GBP 38

million POSA of which Agri-TAF is a part.

Rwanda has already accessed

significant support from this fund via

DFID for the establishment and initial

capitalisation. Further funding is

dependent on ongoing discussions

with DFID and the outcome of a DFID

business case made to the fund.

Rwanda received USD 0.37 million to

Draft a National Climate Change and

Low Carbon Development Strategy

implemented through the World

Bank.

Germany's

International

Climate

Initiative

Established by the German Government in 2008

the initiative has approved USD 1.1 billion for a

total of 377 mitigation, adaptation, REDD+

projects. The initiative is innovatively funded

partly through sale of national tradable emission

certificates, providing finance that is largely

additional to existing development finance

commitments. Grants and loans are typically in

the region of €2.5 million.

Rwanda has received two grants for

around USD 2.5 million. Funding

applications can only be made if

requested by the BMUB.

Norway's

International

Climate and

Forest Initiative

Has approved a total of USD 305 million

through bilateral channels up to 2012. Sizeable

pledges have been made for REDD+ activities

in Brazil, Indonesia, Tanzania, and Guyana.

The majority of NICFI’s activities are conducted

through multilateral channels and bilateral

initiatives including the FIP, UN REDD,

Brazilian Amazon Fund, Congo Basin Forest

Fund, Forest Carbon Partnership Facility and

Forest Investment Program.

NICFI activities are only conducted through

bilateral channels in countries where

multilateral initiatives and/or multi-donor

Funding modality suggests a low

probability of interest in Rwanda by

this fund.


Name of fund Details Planned and ongoing projects

cooperation already exist. This ensures that

recipient countries possess the necessary

capacity for the uptake of projects. However,

exceptions are made for:

Countries that have already made such

extensive progress at the national level that

performance-based support for the

implementation of an established strategy can

be immediately provided; and

Countries with which Norway has long, broad-

based experience of cooperation on natural

resource management, and which have already

started internationally supported REDD

programmes.

4 Next steps

Agri-TAF will facilitate closer linkages between FONERWA and MINAGRI and RAB to ensure that agriculture

components of any proposed climate projects align closely with sector and national priorities. In particular,

over the coming months there is a need for effective engagement with FONERWA and World Bank missions

during the development phase of the SPCR, the Investment Plan and the two concept notes for the PPCR

and FIP. Active engagement is also needed during the preparatory studies for the tea resilience component of

the planned Gicumbi GCF investment and the potential development of a second full GCF proposal for

mainstreaming. Key departments to involve are: DG Agriculture Development and DG Strategic Planning and

Coordination.

1. Agri-TAF will facilitate closer engagement between MINAGRI and the DG REMA who serves as the GEF

focal point and can support applications to a number of funds including the GEF Trust Fund and LDCF.

The potential for accessing funds for a project to support the proposed interventions recommended by the

EU funded 2011 Strategic Environmental Assessment and the GGCRS including: agro-ecological

methods and approaches including conservation agriculture, agroforestry, etc.; integrated watershed

management, integrated approaches to soil fertility and water management; and diversification of crops

and livestock production systems through sustainable land management.

2. Agri-TAF will consult with FONERWA to explore the potential for submitting a proposal to the NAMA

Facility.

3. Agri-TAF will consult with the EU delegation to determine the potential for accessing the EU’s Global

Climate Change Alliance (GCCA) as a potential source of funds for mainstreaming climate change

considerations into sectoral development planning, budgeting, implementation and monitoring and/or

improving knowledge about the effects of climate change, developed appropriate adaptation actions for

the agriculture sector as this is a stated area of interest for the GCCA.

4. Agri-TAF will consult with the IFAD programmes to ascertain the potential for an ASAP supported

intervention around one or more of the following areas:


a. increased availability of water and efficiency of water use for smallholder agriculture production and

processing;

b. increased human capacity to manage short- and long-term climate risks and reduce losses from

weather-related disasters;

c. climate-resilient rural infrastructure; and


d. communication knowledge on Climate Smart Smallholder Agriculture.

6. Agri-TAF will consult with DG Planning to ascertain if there are any forthcoming investments from the

sectors key development partners (World Bank, DFID, USAID, IFAD, BTC, AfDB) that have not been

identified by the desk study.

7. Agri-TAF will support MINAGRI to develop a more coordinated approach to identifying and tracking

climate finance opportunities that would enable it to assess funding availability and target its resource

mobilisation efforts to tap in more effectively to international climate funds. This will involve providing

periodic briefing updates on climate finance opportunities to the PS and DG Planning and involving the

Climate and Environment Specialist in taking over this task.


Annexes

Annex 1 Development partners in Rwanda’s agriculture

sector

1 International Fund for Agricultural Development (IFAD)

IFAD is a specialized agency of the United Nations dedicated to eradicating poverty and hunger in rural areas

of developing countries and a long term development partner in Rwanda. Since 1981, IFAD has financed 14

rural development programmes and projects in Rwanda for a total amount of US$201.8 million. The financing

provided by IFAD consists of concessional loans and full grant funding based on the Debt Sustainability

Framework. IFAD-funded grants have financed the activities of two projects supporting post-conflict

reconstruction efforts and refugee rehabilitation.

There are currently two generations of IFAD-financed programmes and projects. The first, designed during the

1980s and 1990s, included integrated rural development programmes and projects. These programmes and

projects aimed to develop the agricultural sector in specific parts of the country by identifying all related

elements and linking them together. Projects of the second generation, in place since the mid-1990s, called

for activities that have an impact beyond the local level. They focus on a single aspect of rural development,

such as market access or agricultural production and its relation to government policy-setting or other national

initiatives already in place, to favour their replication in the rural environment.

IFAD's strategy in Rwanda is aligned with the government's Economic Development and Poverty Reduction

Strategy II and Strategic Plan for the Transformation of Agriculture III, as well as the IFAD Strategic

Framework for 2011-2015. Its overall objective is to reduce poverty by empowering poor rural men and

women to actively participate in transformation of the agriculture sector and rural development – and by

reducing their vulnerability to climate change. The COSOP's strategic objectives are to:

1. Sustainably increase agricultural productivity through management of the natural resource base and

investments in physical and social capital – including scaled-up agricultural intensification – resulting in

improved incomes and livelihood

2. Develop climate-resilient export value chains, post-harvesting processes and agribusiness to increase

market outlets, add value to agricultural produce and generate employment in rural areas

3. Improve the nutritional status of poor rural people and vulnerable groups included in the process of

economic transformation.

There are two ongoing projects:

1. Project for Rural Income through Exports (PRICE) 2011-18 - US$ 37.4 million (IFAD loan: US$ 18.7

million, DSF grant: US$ 18.7 million)

2. Climate-Resilient Post-Harvest and Agribusiness Support Project – 2013-18 - US$ 33.9 million (IFAD

loan: US$ 13.5 million, DSF grant: US$ 13.5 million, IFAD ASAP: US$ 6.9 million)

1.1 Project for Rural Income through Exports (PRICE)

US$ 37.4 million (IFAD loan: US$ 18.7 million, DSF grant: US$ 18.7 million, ASAP grant 7 million, GoR

counterpart funds: US$12.35 million)

2011-18

The goal of PRICE is to improve farmer income through their integration into key export-driven agricultural

value chains. The approach of PRICE is to: (i) support value chains to tackle key production, processing and


marketing constraints; (ii) diversify value chains to secure broad-based growth and include non-traditional

crops such as sericulture and horticulture that lends itself to cultivation by very small farmers; (iii) promote the

sustainability of cooperatives as a means to generate economies of scale and increase farmer access to

markets and support services; (iv) increase returns to farmers by providing technical assistance with

production as well as capturing more valued added; (v) mainstream the project into government structures to

build capacity and create a sustainable exit strategy.

The project has national coverage and supports interventions in selected areas across the country along

specific criteria developed for each value chain:

Coffee: activities would support existing coffee plots and 3,100 ha of new plantations.

Tea: activities to be organised around one existing and 5 greenfield sites, for which tenders for

building private tea factories are to be launched soon.

Sericulture: activities will focus on the 40 cooperatives already established by PDCRE in different

agro-ecological zones across the country.

Horticulture: activities would be developed by groups of investors teaming up with smallholder farmers

to develop horticulture value chains.

1.2 National Sericultuture Centre (NSC)

USD 4,301,190 PRICE +

Timeline: 5 YEARS (PRICE)

The objective of the NSC is to provide possible logistical and technical support to beneficiary

farmers/cooperatives to optimise production and maximize profits with a major thrust on value addition

initiatives for production of various silk products / handcrafts for local and foreign markets. The partners are

the Sericulture Cooperatives, farmers, Unions, Individual Enterpreneurs, Rwanda Silk Farmers Federation

(RSFF), Agro-Processing Industry Limited (API Ltd), UTEXRWA. The NSC is the technical institution

implementing the silk development component activities supported by SPIU and Government.

The centre’s core mandate is to supply quality mulberry cuttings with facilitation from SPIU to the sericulture

sub stations, cooperatives and household silk farmers; undertake silkworm egg production in order to ensure

adequate supply to the cooperatives; organize sericulture training for both Technicians, Cooperative members

and household silk farmers; and provides sufficient extension services to the cooperatives. NSC is also in the

process of implementing an ambitious 5 year Strategic plan they developed for Ministry of Agriculture

(MINAGRI) to establish 10,000 hectares of mulberry (2013 – 2018).

1.3 Climate Resilient Post-Harvest and Agribusiness Support Project

(PASP)

US$ 33.9 million (IFAD loan: US$ 13.5 million, DSF grant: US$ 13.5 million, IFAD ASAP: US$ 6.9 million)

2013 - 18

The project aims to Increased smallholder and rural worker incomes (including women, youth and vulnerable

groups) from CIP crop and dairy PHHS-related businesses. There are two components:

1. HUB capacity development programme and business coaching

2. Post-harvest climate resilient agri-business investment support

PASP is strengthened through a grant from the Adaptation for Smallholder Agriculture Programme (ASAP), to

enable the project to address climate-related post-harvest problems in the prioritized CIP crops and dairy.

Based on a review of existing value chain studies and market information available on the CIP crops and dairy

sector, MINAGRI has decided to initially focus PASP on maize, beans, cassava, Irish potato and dairy. The

initial target for PASP national beneficiaries will be 32,400 rural households in 10 districts where the project

will be intervening. These households will be members of approximately 200 HUBs. The North-west area

includes the districts of Musanze, Nyabihu and Rubavu producing Irish potato, maize, beans and milk. The


Eastern province area includes the districts of Gatsibo, Kayonza, Ngoma and Nyagatare producing maize

(more than 90%), beans (94%) and cassava (50%), with also potential for dairy development. The Southern

province area includes the districts of Muhunga, Kamonyi and Ruhango with predominantly two crops, with

over 70% of households growing cassava, and more than 90% growing beans.

To overcome the contains the youth face and ensure their opportunities to participate and benefit from PASP

investments, the project will: (i) profile young people as part of the baseline analysis and identify those that

are household heads in the Ubudehe categorization to have a better understanding of their poverty levels; (ii)

prioritise young people for training related to the development of skills and capacities in off-farm income

generation, including linkages to the HANGUMURIMO programme in MINICOM that took over the

apprenticeship programme of PPPMER II for the establishment of training positions with cooperatives and

cooperative-owned businesses; (iii) ensure that the poorer young households gain access to employment

generated by project activities; and (iv) identify within cooperatives high potential youth with good literacy

skills for leaders‘ training. Linkages will be established with the USAID/EDC Youth Livelihoods Project and

vocational technical schools to identify employment opportunities. Finally, opportunities for youth participation

in simple mechanisation will be also explored.

1.4 Kirehe community-based Watershed management Project

(KWAMP)

USD 49.3 million

2009-2016

This large scale investment has recently ended. The Kirehe community-based Watershed management

Project (KWAMP) operates in Kirehe District since 2009 as an agricultural investment project implemented by

MINAGRI, originally co-financed by IFAD, WFP, DED and the Government of Rwanda. It became effective on

30th April 2009, and was due for completion in June 2016. Its overall objective was to develop sustainable

profitable small-scale commercial agriculture in Kirehe District. The total cost of the project was estimated at

USD 49.3 million. As some financiers did not fulfil their commitment (WFP 8.13 million and DED 0.511

million), the total project cost now stands at 40.687 million. The current IFAD grant commitment amounts to

USD 26.77 million. It operated in 18 watersheds of Kirehe district and aimed at reaching 22 500 direct and 10

000 indirect beneficiaries. KWAMP supported investments were handed over to Kirehe District in April 2016.

2 World Bank

There are six active projects supported by the World Bank in Rwanda representing an investment of USD

209.43 million:

1. Third Phase of the Transformation of Agriculture Sector Program-for-Results (PforR) Project for Rwanda -

USD 100 million in IDA, 2014-17

2. Rwanda Feeder Roads Development Project - US$ 49 million, 2014-2021

3. Third Rural Sector Support Project (RSSP3) - US$ 15.90 million (IDA) 2014-18

4. Land Husbandry, Water Harvesting and Hillside Irrigation - USD 35 million, 2013-2017

5. Landscape Approach to Forest Restoration and Conservation (LAFREC) - USD 9.53 million (from LDCF),

2014 – 19

6. Lake Victoria Environmental Management Project (LVEMP) is also relevant as it promotes IPM, FFS and

watershed management - US$ 15 million IDA loan over 5 years

In addition, there is one pipeline project:

1. Rwanda Pilot Program for Climate Resilience – USD1.5 million (from the CIF) for preparation of a

Strategic Program for Climate Resilience (SPCR) and associated investment plan.


Details on each of these programmes are provided below. There is also a small project/study on livestock and

climate change which is developing a climate tool for the livestock sector in Rwanda as well as support for

CSA analysis and a possible manual for CSA and integration into policy. The Bank has also produced two

recent reports that are relevant to environment and climate mainstreaming:

WB/CGIAR/CIST CSA brief on Climate Smart Agriculture (2015) Environmental and Social Systems

Assessment (ESSA) of the Program-for-Results programme (2014)

Agriculture Public expenditure review – including climate and environment

2.1 Third Phase of the Transformation of Agriculture Sector Program-

for-Results (Pfor R) Project for Rwanda

USD 100 million in IDA

2014-17

The objective of the PforR operation is to increase and intensify the productivity of the Rwandan agricultural

and livestock sectors and expand the development of value chains. The operation supports the Government

of Rwanda’s strategic objectives of the Transformation of Agriculture Sector Program Phase 3 with aims to

enhance food security and nutrition contributing to reduction in poverty and inclusive economic growth. The

operation supports four broad program areas: (i) agriculture and animal resource intensification; (ii) research,

technology transfer and professionalization of farmers; (iii) value chain development and private sector

investment; and (iv) institutional development and agricultural cross-cutting issues.

The PforR operation is designed as a programmatic results-based approach in the agriculture sector. The

Program is based on well-functioning Government fiduciary systems and practices, including contract and

financial management, governance and anti-corruption systems, social and environmental regulations and

systems, and technical capacities as demonstrated over the last 13 years in implementing World Bank

supported projects/programs in the sector. Additionally, MINAGRI has demonstrated strong monitoring and

reporting against results/indicators in the Bank- financed operations. The PforR operation also is designed to

reinforce and strengthen the Government's own systems for delivery of key agriculture services, while putting

in place processes to expand the role of the private sector in service provision and production and agro-

processing investments.

2.2 Rwanda Feeder Roads Development Project

US$ 49 million

2014-2021

The Feeder Roads Development Program co-funded with USAID and the World Bank is a USD 49 million

investment that will run to 2021 with the aim of enhancing all season road connectivity to agricultural market

centres in four districts. The project includes an institutional development and project management

component which provides technical assistance on environmental, social, technical and financial audit. The

objective of the project is to enhance all season road connectivity to agricultural market centers in selected

Districts. There are three components:

1. Rehabilitation, Upgrading and Maintenance of Selected Feeder Roads:(Cost $41.10 M)

2. Strategy Development for Rural Access and Transport Mobility Improvement and Support to Preparation

of Follow-on Operations:(Cost $5.50 M)

3. Support to Project Management:(Cost $2.40 M)

The project has prepared an Environmental and Social Management Framework.

2.3 Third Rural Sector Support Project (RSSP3)

US$ 15.90 million (IDA)


2014-18

The additional finance (USD 15.9 million) is intended to cover the costs associated with a scale-up of the

impact and development effectiveness of the RSSP3 project by: (i) expanding marshland area developed for

irrigation beyond the original project scope (i.e., on an additional 1,000 hectare (ha)); and (ii) developing 200

ha of sustainable hillside works to protect the irrigation infrastructure against erosion and run off.

The AF helps finance the costs associated with a scale-up of the impact and development effectiveness of the

RSSP3 project by: (i) expanding marshland area developed for irrigation beyond the original project scope

(that is, on an additional 1,000 hectare (ha); and (ii) developing 200 ha of sustainable hillside works to protect

the irrigation infrastructure against erosion and run off. The scale-up will thereby target some 1,500 additional

beneficiaries in the rural areas around Kigali city.

The AF capitalises on the achievements of the ongoing RSSP3 project and the first two phases of this

program and the World Bank supported Land Husbandry, Water Harvesting, and Hillside Irrigation (LWH)

Project in increasing sustainable agriculture production and commercialization. The AF, along with the LWH

AF serve as a bridge for the preparation of a larger national scale-up operation in the sector within the

International Development Association (IDA) 17 envelope. There are three components:

1. Infrastructure for Marshland, Hillside and Commodity Chain Development which aims to: (i) Expand

irrigation in cultivated marshlands through rehabilitation and development; (ii) Promote sustainable land

management practices on associated hillsides; and (iii) Improve economic infrastructure in support of

commodity chain development.

2. Capacity for Marshland, Hillside and Commodity Chain Development. This component aims to provide

multi-level capacity needed to maximize beneficiary gains from the infrastructure investments and to

ensure the sustainability of project objectives beyond the life of the series through: (i) Capacity Building

for Farmer Organizations and Cooperatives; (ii) Capacity Building for Improved Production Technologies;

and (iii) Capacity Building for Value Chain Development.

3. Project Coordination and Implementation. This component aims to ensure that project activities are

effectively managed within the SWAp structure for Ministerial implementation of programs and projects at

MINAGRI.

2.4 Land Husbandry, Water Harvesting and Hillside Irrigation AF

USD 35 million

2013-2017

The Land Husbandry, Water Harvesting and Hillside Irrigation Project is part of the RSSP. The objective is to

increase the productivity and commercialization of hillside agriculture in target areas in the country. The

project uses a modified watershed approach to introduce sustainable land husbandry measures for hillside

agriculture on selected sites, as well as developing hillside irrigation for sub-sections of each site. The Project

operates in 101 watersheds and has three components:

1. Capacity Development and Institutional Strengthening for Hillside Intensification. This component aims to

develop the capacity of individuals and institutions for improved hillside land husbandry, stronger

agricultural value chains and expanded access to finance.

2. Infrastructure for Hillside Intensification. This component will provide the essential ‘hardware’ for hillside

intensification to accompany the capacity development and institutional strengthening activities of

Component A.

3. Implementation through the Ministerial SWAp Structure. This component aims to ensure that Project

activities are effectively managed within the new SWAp structure for Ministerial implementation of

programs and projects at MINAGRI.

The project has piloted best practice in sustainable land use using IWRM approaches in Nyanza, Karongi and

Gatsibo. The Bank has provided additional credit to the project to finance the costs associated with a scale-up

of the impact and development effectiveness of the project by (i) expanding land husbandry works beyond the


original project scope (i.e., on an additional 7,000 hectare (ha) in the poorest regions of the country); and (ii)

developing 500 ha of irrigation works to be carried out in selected priority areas and where feasibility studies

have already been completed. The scale-up will thereby target some 15,000 additional beneficiary households

in the country.

2.5 Landscape Approach to Forest Restoration and Conservation

(LAFREC)

USD 9.53 million

2014 – 19

The project development and the global environmental objective is to demonstrate landscape management for

enhanced environmental services and climate resilience in one priority landscape. The funds are channelled

through REMA-MINELA. There are two components:

Forest-friendly and climate-resilient restoration of Gishwati-Mukura landscape (US$8.227 million)

Research, monitoring and management (US$1.305 million)

2.6 Rwanda Pilot Program for Climate Resilience – pipeline project

USD1.5 million

The grant is for the preparation of a Strategic Program for Climate Resilience (SPCR) and associated

investment plan, and to establish an enabling environment that allows for the mainstreaming of climate

resilience into development planning and implementation. The grant will provide Technical Assistance in three

phases:

1. Identification of a programmatic approach towards mainstreaming climate resilience, and preparation of

the SPCR and accompanying strategic investment plan.

2. Identification of appropriate funding sources and packaging of investments

3. Initial capacity building and climate information systems investments

2.7 Lake Victoria Environmental Management Project (LVEMP)

USD 15 million IDA loan

This is a five-year East African Community project under implementation in the five countries that share the

Lake Victoria Basin: Burundi, Kenya, Rwanda, Tanzania and Uganda. It is funded through a US$ 15 million

IDA loan from the World bank. There are four components: 1) strengthening institutional capacity for

managing shared water and fisheries resources; 2) point source pollution control and prevention; 3)

watershed management with two sub-components: (i) natural resource conservation and livelihoods

improvement; and (ii) community capacity building and participation; and 4) project coordination and

management. In the Goma area, around 100 ha of radical terracing have been completed and 70ha of land

planted with trees. The project also disburses small grants through SACCO branches to cooperatives through

its Community Driven Development (CDD) sub-project initiative. This approach enables local communities to

access project funds for sustainable enterprise development. Under component 3 (watershed management),

the work includes rehabilitation of riparian buffer zones, sustainable land management, IPM, Farmer Field

Schools and watershed management, training and awareness building on the Environmental Organic Law.

Under the third component, the project will establish biodiversity-rich ecosystems, reduce erosion and

regulate water flow; as well as develop and promote alternative livelihoods based on the restored ecosystems.

3 European Union

The EU has recently agreed to provide €200 million in budget support to Rwanda agriculture to invest in farm

production, nutrition and jobs of which €20 million is for TA. The funds will be used to support the


transformation under way in Rwandan agriculture specifically to support government programmes to improve

nutrition among rural communities, expand the number of food-secure households, make farmers more

efficient in cropping patterns and land use, and extend the irrigation network to cover more households. The

EU grant will also help spread agro-forestry in hilly and terraced areas, target job opportunities among export-

oriented agricultural producers and processors, and provide suitable loans to farmers and cooperatives.

Support will also be provided to improve public financial management capacities in agriculture. In addition to

this grant, the EU’s GCCA also supports two regional projects that Rwanda is part of. The EU also funded the

Strategic Environmental Assessment of the agriculture sector in 2011.

4 African Development Bank (AfDB)

4.1 Livestock Infrastructure Support Programme (LISP)

35.35 Million USD

4 Years, until 31 December 2015

A nationwide programme, LISP Works with Farmers cooperatives, Local and International NGO's. The goal of

the Programme is to create an enabling environment that will stimulate the development of a modern livestock

industry in Rwanda through value addition and access to markets in order to encourage diversification of the

economy, sustain growth, create jobs and reduce poverty. Its operational objective is to build the necessary

infrastructure and services (livestock markers, Milk Collection Centers, Feeder Roads and Slaughter facilities)

that will contribute to the development of a sustainable and profitable livestock market as well as stimulate

dairy production and overall improvement of the livestock industry in Rwanda. This is aimed at supporting the

implementation of the Government development agenda of improving the livestock sub-sector and the

livestock business environment for active private sector participation.

The medium term objective of the LISP is to sustain the growth of the livestock sector by: (i) improving the

marketing system in a sustainable manner through the provision of critical infrastructure; (ii) improving the

business environment for active private sector participation; and, (iii) contributing to ensuring macroeconomic

stability.

The Livestock Infrastructure Support Programme (LISP) focuses on:

1. Rural infrastructure, especially:

1. water supply for livestock farmers;

2. feeder roads to improve access for livestock farms;

3. milk collection centers (MCCs) to increase the milk handling capacity and safety, improved marketing and

slaughtering facilities for livestock.

The food security enhancement activities under the programme:

1. support to One Cow per poor family and

2. up scaling of technologies and building capacity of cooperatives in order to raise the productivity of

livestock farmers, and their competitiveness which would contribute significantly to the technological

transformation of the dairy industry.

2. Capacity building of dairy farmers MCC cooperatives

A capacity building program for dairy farmers around MCCs was already developed and adopted by all the

dairy sector development partners including: HPI, SNV, Land O`Lakes (RDCP II), Send A Cow Rwanda, CHF

and EADD. Farmer trainings courses are ongoing in collaboration with development partners and are focusing

on many topics among them we have: Milk handling at farms, Milk handling at the MCC, Hygiene and

sanitation at the MCC, Veterinary service provision, Artificial Insemination service provision, Cooperative and

MCC management skills, Milk data collection and Recording skills, etc. Over 40 trainers of dairy farmers

around MCCs have been trained and 10,746 farmers trained (41% of them are women).


3. Livestock Watering System Development.

After completion of the feasibility study plus the tendering process, the Livestock watering system (LWS)

construction works started in February 2013 for a period of 18 Months for site 1 located in Nyagatare District.

The total livestock farms area (acreage) to be covered is 6,467 ha; the total number of Farms that will benefit

from phase one of this project is 967 farms and 839 of them have been already identified. These farms are

located in following administrative Sectors: Tabagwe, Rwempasha; Musheri and a small part of Rwimiyaga.

The network pipeline length to cover is 287 Kms. The construction works are on-going and the overall works

progress reaches at 90%.

4. Contribution to Mukamira Dairy

"Mukamira Dairy Ltd" is a Public Private Partnership (PPP) initiative created in 2010 by 12 local dairy farmers’

cooperatives and the Government of Rwanda and is implemented through the Ministry of Agriculture and

Animal Resources (MINAGRI) by the Livestock Infrastructure Support Programme (LISP). The Government of

Rwanda/MINAGRI as the main shareholder in the company is therefore the leading shareholder. After

completion of the feasibility study and the tendering process, construction works started in July 2012 and are

so far at 95% of progress on civil works. Overall progress estimated at 100% for the waste water treatment

plant including 5 soak way pits and 1 hangar for which provisional reception is done: only testing once

connected to the factory is still awaited. Works progress estimated at 98% for construction and supply of

water tanks.

AfDB also produced the following report: Towards Inclusive Green Growth in Rwanda: Costing of Investments

in Agriculture and Natural Resources (Ntabana, 2014)

5 DFID

5.1 Programme of Support to Agriculture

£38.25m

2014 - 2019

The project will provide sustainable increases in agricultural productivity which benefit the poor. This will

contribute to the impact of achieving sustainable economic growth and a reduction in poverty. This includes a

provision of £34m over 4 years (2014-2018) to support the implementation of the Government of Rwanda

(GoR) agriculture strategy, through a World Bank Programme for Results (PforR). The PforR disburses funds

against a set of agreed upon Disbursement Linked Indicators (DLI’s). A separate MoU with GoR provides

assurances that DFID funds are re-invested into particular priorities in the agriculture sector. £4m will support

a Technical Assistance Fund (TAF) that will provide additional resources, analysis and expertise to ensure

increases in agricultural productivity are sustainable and inclusive.

The majority of the DFID funds (£34m) will be allocated to the World Bank PforR. The PforR makes

disbursements upon the achievement of pre-agreed strategic results in the GoR’s latest Strategic Plan for the

Transformation of Agriculture (PSTA III). Key activities to deliver results include: (i) agriculture and animal

resource intensification; (ii) research, technology transfer and professionalization of farmers; (iii) value chain

development and private sector development and; (iv) institutional development and support to agricultural

cross-cutting issues. DFID funds that have been disbursed will be reinvested, by the GoR, into these budget

lines.

The £4m TAF will provide additional expertise, knowledge and evidence to help ensure increases in

agricultural productivity are sustainable and benefit the rural poor. Activities will be designed during an

inception phase but indicative focus areas for the programme include:

research and evaluation to support programme implementation and generate improved evidence.

capacity building targeting additional support on specific areas of interest to DFID that may affect

achievement of the programme outcome.


coordination that promotes synergies between PSTA III programmes and other relevant activities

across programmes and sectors.

5.2 Improving Market Systems for Agriculture in Rwanda (IMSAR)

£6,850,758

2015-2021

IMSAR will commercialise agriculture through improving the way agricultural market systems function. It will

identify market failures and provide the necessary agricultural expertise and finance required to help address

them. This will benefit the poor as producers, employees and consumers, and small and medium size

business, resulting in increased sales among farmers and agro-enterprises, increase in the percentage of

Rwandan agricultural produce that has value-added and an increase in export diversification.

5.3 FONERWA

DFID provided seed funding to capitalise FONERWA and TA support to the Fund Management team for the

first three years.

6 Belgian Development Agency (BTC)

BTC is a major development partner for the agriculture sector but the current package of support is ending.

6.1 Support to SPAT II

18,000,000 EUR (BTC) and 620,000 EUR (Government of Rwanda)

July 2011 – June 2016

Market Oriented advisory services and quality seeds

A nationwide project implemented through the Rwanda Agricultural Board (RAB), Centre for Communication

and Information in Agriculture (CICA). The specific objectives are:

1. “Improved access to advisory services for crops and livestock”

2. “Improved access and use of high quality planting materials of food crops for men and women”

Main activities include:

Support RAB to implement “The Rwanda Seed Initiative”

Seed policies – Seed production – Gene bank – Rwanda Seed Enterprise –

Private sector development – Quality control

Support to The Rwanda Farmer Field School Initiative (a nationwide project implemented through the

Rwanda Agricultural Board for all major crops)

Support to CICA (a National extension Resource center for extension material development and mass

coverage through radio messages)

7 USAID

Agriculture falls under USAID'S Economic growth program which aims to:

1. Build a strong agricultural sector, and

2. Promote private sector competitiveness

In 2015, USAID spent USD68.3 million supporting the agriculture sector in Rwanda. In 2016, USAID prepared

a review of Climate Smart Agriculture and Sustainable Intensification in Rwanda. USAID also invested USD


21.9 million in IWRM over five years from 2011 through the Rwanda Integrated Water Security Program

(RIWSP) which promotes innovative technologies for water supply, sanitation, agriculture and community

climate resilient water management in two target watersheds.

7.1 Rwanda Climate Services for Agriculture project

The Rwanda Climate Services for Agriculture project, is planned to transform the country’s rural farming

communities and the national economy through improved climate risk management. The project will

reconstruct Rwanda’s incomplete meteorological data record using cutting-edge climate science, and develop

climate information products and services based on the expressed needs of farmers and other end-users. It

builds on on-going innovations made by the Enhancing National Climate Services initiative (ENACTS), which

filled in a 15-year gap in Rwanda’s historical meteorological records. The project aims to deliver four specific

outcomes:

1. Climate services for farmers.Farmers across Rwanda’s 30 districts will have decision-relevant, operational

climate information and advisory services, and be trained to use the information to better manage risk.

2. Climate services for government and institutions.Agricultural and food security decision makers in the

Ministry of Agriculture and other national and local government agencies and institutions will use climate

information to respond more effectively to risks.

3. Climate information provision.Meteo-Rwanda will design, deliver, and incorporate user feedback into a

growing suite of weather and climate information products and services tailored to the needs of decision

makers.

4. Climate services governance.A national climate services governance process will oversee and foster

sustained coproduction, assessment and improvement of climate services.

The project is being implemented by the Rwanda Agriculture Board (RAB) and Meteo Rwanda, in

collaboration with the CGIAR Research Program on Climate, Agriculture and Food Security (CCAFS),

Columbia University’s International Research Institute for Climate and Society (IRI), the International Center

for Tropical Agriculture (CIAT), the World Agroforestry Centre (ICRAF), and the International Livestock

Research Institute (ILRI).

7.2 Feed the future project

USD30-35 million

2016-2021

Feed the Future is a United States Government (USG) initiative that addresses global food insecurity by

supporting agriculture sector growth and improving nutritional status in 19 focus countries. USAID are

finalising a major $30 – 35 m climate smart agriculture11 (CSA) programme, an activity of USAID’s Feed the

Future (FtF) Project, that will run over the next 5 years. This investment will combine CSA with nutrition and

improved market access and has a strong gender focus to ensure that women have access to and control

over agricultural resources. Most relevant to environmental mainstreaming is outcome 1 (increased

sustainable agriculture productivity) which will involve training farmers on good agriculture practices,

facilitating access to inputs, building resilience to climate change and improving natural resource management

practices (soil, water). Gender, climate change and environmental resilience are cross cutting themes.

Interventions will support an integrated landscape approach to agriculture productivity that follows the

principles of sustainable land and water use, and contributes to improving the resilience of farming systems

through improving water management and preventing soil erosion, while maximising the effectiveness of input

use through integrated soil fertility. The activity will also promote integrated water management, a farming

11 Practices that can increase food production from existing farmland while minimizing the negative impacts on

environment are referred to as ‘climate smart agriculture’ (CSA) and/or sustainable intensification (SI).


systems approach (integrated crop management), integration of livestock production and vegetable

production all of which have been shown to have positive environmental, nutrition and climate resilience

benefits.

The activity is planned to start early 2017 and will target the Ministry of Agriculture and the Rwanda

Agriculture Board for capacity-strengthening. The project will also work and build capacity at the district level

and support RAB’s agricultural extension system. Other key partners will include the Ministry of Local

Government and the Rwanda Natural Resources Authority. The project will have a strong focus on

community-based organisations, non-governmental organisations, and farmer cooperatives that will be key to

ensure farmer ownership and sustainability of the investment.

The main Feed the Future goal in Rwanda is to “sustainably reduce poverty and hunger.” Under this main

goal are two First-Level Objectives: (1) Improved Nutritional Status, especially of women and children, and (2)

Inclusive Agriculture Sector Growth. these First-Level Objectives have two corresponding strategic objectives:

1. Strengthened capacity for sustained and improved health outcomes; and

2. Expanded economic opportunities in rural areas.18

The impact that Feed the Future aims to achieve in Rwanda by 2015 are to:

Assist more than700,000 vulnerable Rwandan women, children, and family members—mostly smallholder

farmers—to escape hunger and poverty.

Reach nearly 190,000 children, improving their nutrition to prevent stunting and child mortality.

Leverage strategic policy engagement and institutional investments to improve income and nutritional

status in significantly more rural households.

To reduce hunger and poverty in Rwanda, Feed the Future is tackling major constraints to agriculture

investment. This includes core investments committed to building market linkages, increasing agricultural

productivity, and improving infrastructure and nutrition. Core investments are coupled with capacity building

and strengthening the policy environment to facilitate the expansion of the private sector and its contribution to

the overall growth of the Rwandan economy. Feed the Future supports bean, maize, and dairy value chains

through investing in sustainable market linkages, infrastructure, and nutrition. Feed the Future also provides

limited support to Rwanda’s traditional high-value exports of coffee and pyrethrum.

This investment combines CSA with nutrition and improved market access and has a strong gender focus to

ensure that women have access to and control over agricultural resources. The intervention framework is

shown in Annex 3. Most relevant to environmental mainstreaming is outcome 1 (increased sustainable

agriculture productivity) which will involve training farmers on good agriculture practices, facilitating access to

inputs, building resilience to climate change and improving natural resource management practices (soil,

water). Gender, climate change and environmental resilience are cross cutting themes.

Interventions will support an integrated landscape approach to agriculture productivity that follows the

principles of sustainable land and water use, and contributes to improving the resilience of farming systems

through improving water management and preventing soil erosion, while maximising the effectiveness of input

use through integrated soil fertility. The activity will also promote integrated water management, a farming

systems approach (integrated crop management), integration of livestock production and vegetable

production all of which have been shown to have positive environmental, nutrition and climate resilience

benefits.

The main activities are planned to start early 2017 and will target the Ministry of Agriculture and the Rwanda

Agriculture Board for capacity-strengthening. The project will also work and build capacity at the district level

and support RAB’s agricultural extension system. Other key partners will include the Ministry of Local

Government and the Rwanda Natural Resources Authority. The project will have a strong focus on

community-based organisations, non-governmental organisations, and farmer cooperatives that will be key to

ensure farmer ownership and sustainability of the investment.

Feed the Future also supports the following programs, partnerships and organisations in Rwanda.

Africa Lead


Borlaug Higher Education for Agricultural Research Development (BHEARD)

Famine Early Warning System Network (FEWSNet)

Feed the Future Innovation Lab for Collaborative Research on Horticulture

Global Agriculture and Food Security Program

HarvestPlus Iron-fortified Beans Activity

Human and Institutional Capacity Development Project

Integrated Improved Livelihood Program

Land Husbandry, Hillside Irrigation and Water Harvesting Program

8 FAO

Cooperation between Rwanda and FAO began in 1963, and an FAO country office opened in 1985. Since

then, assistance has comprised an evolving range of interventions, including development projects and

emergency response and rehabilitation. A more recent focus on improved policymaking is illustrated by FAO’s

support to the mainstreaming of value chain development in Rwanda’s Strategic Plan for Agricultural

Transformation. On the technical front, Rwanda was the first country to have embraced FAO’s Sustainable

Food and Agriculture (SFA) initiative.

FAO assistance in Rwanda is shaped by the 2013-2018 FAO Country Programming Framework (CPF), which

centres on four priority areas:

1. Improvement of food security and nutrition among the Rwandan population

2. Agriculture and livestock productivity through sustainable use of natural resource management, adapted

to climatic changes

3. Value chain development and private sector investment as a basis for boosting commercialized

agricultural development

4. Institutional collaboration and knowledge sharing in addressing agricultural development, food security

and poverty actions

FAO and the Ministry of Agriculture are mainstreaming related interventions across the agriculture sector

strategy and developing a nutrition action plan. Two joint projects to combat malnutrition among children were

implemented by FAO – with UNICEF, WFP and WHO – in Nyamagabe and Rutsiro, which are two of the most

affected districts.

The FAO-led component aims at promoting local production and consumption of nutritious and safe food as

well as helping the affected households build more resilient livelihoods. In the field, activities focus on the

distribution of small livestock, the construction of kitchen gardens and the provision of agricultural inputs and

tools. Farmer Field and Life Schools (FFLS), an important and successful component of FAO’s activities in

Rwanda, are stressing the benefits of producing bio- fortified crops as well as mushrooms. The sustainability

of the project activities should be assured through capacity building, which also encourages households to

assume ownership. About 649 households in Nyamagabe and 2 120 households in Rutsiro benefited directly

from this collaborative project. Project funded by the Swiss Development Cooperation (SDC) and the

Netherlands.

FAO has also been supporting value chain development for potato, maize, milk, passion fruit, cassava and

pineapple, focusing on Burera, Gicumbi and Gisagara districts. Also in Gicumbi District, FAO focused efforts

on improving farmers’ food and nutrition security and increasing cash income through the intensification, value

addition and commercialization of agricultural and livestock products. A particular emphasis was placed on the

milk value chain, from the dairy farmers to the milk collectors, processors and retailers.

An upcoming project includes a three year project monitoring agriculture and food policies which will support 1

new post in the Planning Department.


8.1 Africa Solidarity Trust Fund for Food Security

The fund was launched in 2013 as a unique Africa-led initiative to improve agriculture and food security

across the region. The Fund was officially launched in June 2013 during the 38th Session of the FAO

Conference. The Trust Fund was developed for African governments and partners to commit resources for the

implementation of national or regional food security initiatives. It will support activities aligned with the

renewed strategic framework and priority programmes of FAO, to enhance governments and regional

organizations capacities to:

1. contribute to eradicate hunger, food insecurity and malnutrition;

2. increase and improve provision of goods and services from agriculture, forestry and fisheries in a

sustainable manner;

3. reduce rural poverty;

4. enable more inclusive and efficient agricultural and food systems at local, national and international

levels; and

5. increase the resilience of livelihoods to threats and crises.

The Fund is governed through the following two bodies: the Steering Committee (SC) and the Fund Assembly

(FA), which decide on priorities and approve proposed activities. The implementation of activities is

coordinated and directed by the Programme Management Unit (PMU), established by FAO for this purpose.

The current volume of the Africa Solidarity Trust Fund is over USD 40 million. Five envisaged country

programmes and action plans (Central African Republic, Ethiopia, Malawi, Mali, Niger) have been approved

by the SC as catalysts to ongoing efforts to eradicate hunger, reduce malnutrition and poverty.

ASTF supports one project in Rwanda (2014-17) which fights malnutrition and rural poverty, through

increasing decent employment in the agricultural sector and improving the local poultry value chain. This

three-year initiative will select rural youth and poor/vulnerable households mainly women headed families as

direct beneficiaries. Poultry farming will offer them supplemental income in addition to improving family diets.

Rwanda is part of the four recipient countries in Eastern Africa (Burundi, Kenya, Rwanda and Uganda) to

benefit from the SFE managed ASTF project.

9 NEPAD

9.1 Gender, Climate Change and Agriculture Support Programme

(GCCASP)

USD 11,891,659

2016-21

The goal of the Gender, Climate Change and Agriculture Support Programme (GCCASP) is to achieve an

effective and more equitable participation of Rwandan women smallholder farmers, youth and other

vulnerable groups in climate-smart agricultural practices. The purpose is to build skills that will enable these

vulnerable groups of societies in Rwanda to derive more benefits from engaging in climate-smart agricultural

practices and capacitate them to better cope with climate variability and climate change. The specific

objectives are to:

Strengthen mainstreaming of gender issues in sectoral policies for climate resilience.

Mainstream gender issues into national policies and strategies.

Capacity building of smallholders women farmers.

Strengthen institutions to enhance participation of women in planning and decision making processes,

and

Improve access of women to livelihood assets, agricultural inputs, loans, climate smart technologies,

market, and rural infrastructure and benefit from adopting best practices.


One of the major aspects of the programme interventions is geared towards improving the policy and

institutional capacity of the Ministry of Gender and Family Promotion to effectively discharge its responsibility

of policy guidance, regulatory and monitoring and evaluation functions to ensure empowerment to address

gaps in socio-cultural, economic and institutional factors that limit achievement of effective and more equitable

participation of smallholder women farmers, through policy changes and resilient capacity building to adverse

effects of climate changes.

The removal of these obstacles will ease and improve the smallholder women farmers’ access to credit and

grants, and subsequently to climate-smart agricultural technologies, capacity building opportunities, land

rights, market and other production assets. Investing in climate smart agricultural technologies and best

practices that are amenable to rural women and young people, is critical in order for them to harvest their

potential to ensure household food security and accelerate agricultural growth and transformation of the rural

economies.

The specific components of the Programme are grouped under four main intervention areas or service lines:

(i) closing institutional gaps; (ii) capacity building of smallholder women farmers; (iii) creation and

strengthening of women platforms; and (iv) investments in up-scaling of innovative and successful practices.

All in all the Rwanda GCCASP programme will support and strengthen the capacities of selected smallholder

women farmer groups and other section of the society who are vulnerable to adverse effects of climate

change and variability, in all 30 districts of the country. Eventually there will be 12,000 direct beneficiaries of

the programme, with women smallholder farmers being the centre of focus.

10UNDP

UNDP fund two projects through REMA that are relevant to environment mainstreaming in agriculture:

1. Poverty and Environment Initiative (PEI), and

2. Decentralisation and Environmental Management Project II (DEMP II)

10.1 Poverty and Environment Initiative (PEI)

The Poverty and Environment Initiative (PEI) Rwanda programme focuses on enhancing the contribution of

sound environmental management to poverty reduction, sustainable economic growth and the achievement of

the MDGs. PEI Rwanda is jointly led by the Ministry of Environment Natural Resources (MINIRENA), the

Rwanda Environment Management Authority (REMA), the Ministry of Finance and Economic Planning

(MINECOFIN). Its overall goal is to contribute to poverty reduction and improved wellbeing of poor and

vulnerable groups through mainstreaming poverty-environment linkages into national development processes.

It operates in six selected line ministries (selected on the basis of expenditure) including MINAGRI and

districts to mainstream environment in their sector policies, plans and strategies and to strengthen capacity for

sustainable sector performance. Work includes increasing national budget allocations in support of pro- poor

environmental outcomes and building the long-term capacity of the government to integrate poverty

environment concerns into the design and implementation of development plans.

Environmental mainstreaming work is carried out under three clusters: (i) central government, including

MINAGRI; (ii) local government; and (iii) communities. At the central level, PEI developed checklists and

guidelines for mainstreaming environment in budget agencies. These are now included in MINECOFIN’s

Budget Call Circulars. PEI also provides 1-week training to all Planning officers of budget agencies on these

guidelines (convened by MINECOFIN). At the local level, PEI assisted with greening the district development

plans (DDPs) in 2015 with FONERWA funding. At the community level, PEI piloted green villages i.e.

settlements with green components including agricultural-related ones and RAB provided cows through the

GRINKA programme. MINAGRI has a permanent seat on the PEI steering committee. PEI also established a

thematic working group (the sub-sector on Environment and Climate Change which is coordinated by the


Director of Planning and M&E from REMA) on environment within the agriculture sector working group that

commissioned a ”Cost-benefit analysis of fertiliser use in agriculture”12 in recognition of the adverse effects of

fertiliser use. PEI also organised a training of trainers on Integrated Pest Management (IPM) in May 2015 for

the Chamber of Agriculture and Livestock in the Private Sector Federation. At present PEI have had no

specific activities with NAEB.

10.2 Decentralisation and Environmental Management Project II (DEMP

II)

The Decentralisation and Environmental Management Project II (DEMP II) works on environmental issues at

the district level. The project is in its second five-year phase and is intended to build on and scale up the

successes of the first phase (2005-8). The overall objective of DEMP II is to integrate environment with

development and promote sustainable livelihoods using decentralisation as a delivery mechanism. The project

has 3 components: 1) enabling MINITERE to effectively implement environmental policies, and support the

decentralisation and coordination of quality delivery of environmental services in the districts; 2) strengthening

district capacity for environmental management – to enable districts to integrate environmental issues into the

development process, through the District Development Plans (DDPs) and the budget process; and 3)

assisting in the implementation of environmental priorities identified in the DDPs by using innovative practices

(e.g. improved cooking stoves, soil conservation technologies etc.), and building public-private-civil society

sectors in integrating conservation and development, targeting communities in/ around protected areas where

degradation threatens livelihoods sustainability.

12 the DG for Agriculture Development, Dr Charles Murekezi, leads on this


Annex 2 International Climate Funds

1 Multilateral climate funds

1.1 Green Climate Fund

Expected to become the primary channel through which international public climate finance will flow, the

Green Climate Fund (GCF) is a direct access fund through accredited regional, national and sub-national

implementing entities and intermediaries. Countries can also access the GCF through MDBs and UN

agencies. To date, the fund has received USD 10.14 billion in pledges. Allocation will balance funding for

mitigation and adaptation measures and 50% of the adaptation funding is ring-fenced for the most vulnerable

countries (LDCs, SIDS and African States).

Grants and concessional loans are available but accredited intermediaries that fulfil specialised fiduciary

standards have the option to pass on GCF funding as risk guarantees and equity investments in addition to

grants and loans. A Private Sector Facility will also provide funding to private actors, and support activities

that especially enable domestic private investment in low carbon and climate resilient approaches. The GCF

is the first climate fund to have a gender mainstreaming approach in place.

The GCF will fund mitigation and adaptation programmes. The focus areas for mitigation include: low-

emission transport, low emission energy access and power generation at all scales; reduced emissions from

buildings, cities, industries and appliances; and sustainable land and forest management (including REDD+

implementation) for mitigation. The core metric is that of greenhouse gas (GHG) emission reductions in tons

of carbon dioxide equivalents. For adaptation focus areas include: increased resilience of health, food and

water systems; infrastructure; ecosystems; and enhanced livelihoods of vulnerable people, communities and

regions.

The Board will make GCF investment decisions based on a set of 6 agreed investment criteria focusing on 1)

impact (contribution to the GCF results areas); 2) paradigm shift potential; 3) sustainable development

potential; 4) needs of the recipient countries and populations; 5) coherence with a country’s existing policies

or climate strategies; and 6) the effectiveness and efficiency of the proposed intervention, including its ability

to leverage additional funding (in the case of mitigation). The initial call for proposals was planned to begin by

mid- 2015, in order to achieve the goal of having a first round of approvals in 2015.

REMA is the National Designated Authority (NDA) and the main point of contact for the Fund. MINIRENA is in

the process of applying for accredited entity status. FONERWA will also apply for this. GoR is in the process

of accessing readiness support to strengthen the institutional capacity for country coordination and multi-

stakeholder consultation mechanisms as needed, as well as to prepare a country programme and project

pipelines. The NDA will take the lead in deploying readiness and preparatory support funding, which is capped

at USD 1 million per individual country per year.

Rwanda is also applying for enhanced direct access which is being piloted to allow developing country-based

accredited institutions to receive an allocation of GCF finance and then make their own decisions about how

to programme resources. This will enable Rwanda’s accredited agencies to have their own project pipeline, or

climate related budget support arrangements. KfW has GCF accreditation and is another channel for potential

GCF funds for mitigation and adaptation projects in Rwanda.


Green Climate Fund

High potential for Rwanda to access significant levels of funding in grants and concessional loans for

adaptation and mitigation programmes in both the private and public sector. Important to complete the

accreditation process for target agencies, to continue to pursue the enhanced direct access status, and take

forward the readiness programme and project pipeline that are currently under review by the fund.

2 Climate Investment Funds

Established in 2008, as one of the largest fast-tracked climate financing instruments in the world, the $8.1

billion CIF provides developing countries with grants, concessional loans, risk mitigation instruments, and

equity that leverage significant financing from the private sector, MDBs and other sources. Five MDBs – the

African Development Bank (AfDB), Asian Development Bank (ADB), European Bank for Reconstruction and

Development (EBRD), Inter-American Development Bank (IDB), and World Bank Group (WBG) – implement

CIF-funded projects and programs.

There are 3 funds relevant to Rwanda. These all fall under the CIF’s Strategic Climate fund:

1. Pilot Programme for Climate Resilience (PPCR)

2. Forest Investment Program (FIP)

3. Scaling Up Renewable Energy in Low Income Countries Program (SREP)

2.1 Pilot Programme for Climate Resilience

Currently the largest operational adaptation fund in the world, the PPCR focuses on a small number of

countries and transactions to maximize impact and possibility for replication. It is active in 9 pilot countries and

2 regional programs, which includes 9 small island nations. The PPCR is part of the World Bank’s portfolio of

Climate Investment Funds (CIFs), and has resources of US$ 1.2 billion and a further US$ 1155 million in

pledges.

The PPCR was established to pilot and demonstrate ways in which climate risk and resilience can be

integrated into core development planning and implementation by providing incentives for scaled-up action

and initiating transformational change. Currently, USD 1.1 billion is allocated for 75 projects and programs,

expecting co-financing of $1.7 billion from other sources while USD 777 million (70% of PPCR allocations) is

approved and under implementation for 44 projects with expected co-financing of $1.1 billion13. The Pilot

Programme for Climate Resilience (PPCR) was only intended to operate until 2012 although it continues to

operate under a “sunset clause” which enables it to operate until new UNFCC architecture becomes available.

The PPCR offers grants and concessional loans to finance adaptation activities in recipient countries but as

with LDCF and SCCF only covers the additional costs necessary to make a project climate resilient. PPCR is

therefore designed to integrate climate resilience into development plans and as such, projects are not

intended to be free-standing but should be combined with MDB resources and/or other parallel co-financing

measures, including government and/or private sector resources.

Unlike the LDCF and SCCF, the fund is accessible to private as well as public entities. To extend the PPCR’s

reach beyond national and regional investment plans and stimulate more private sector participation, USD

75.4 million in concessional financing has been set aside for innovative private sector projects14. The PPCR is

expected to leverage USD 1.7 billion USD in co-financing.

13 http://www.climateinvestmentfunds.org/cif/node/4

14 http://www.climateinvestmentfunds.org/cif/Pilot_Program_for_Climate_Resilience

http://www.climateinvestmentfunds.org/cif/node/4

http://www.climateinvestmentfunds.org/cif/Pilot_Program_for_Climate_Resilience


The PPCR takes a programmatic approach to adaptation and resilience finance and works only with a small

number of pilot countries. The African Development Bank is the regional implementing entity for these

programmes. During the first phase, PPCR was active in 9 pilot countries and 2 regional programs.

PPCR pilot programs are intended to be country led, build on NAPAs and other relevant country studies and

strategies, and strategically align with the Adaptation Fund and other donor funded activities. The PPCR is

designed to provide programmatic finance for climate resilient national development plans with four main

objectives:

1. pilot and demonstrate approaches for integration of climate risk and resilience into development policies

and planning;

2. strengthen capacities at the national levels to integrate climate resilience into development planning;

3. scale-up and leverage climate resilient investment, building on other on-going initiatives; and

4. enable learning-by-doing and sharing of lessons at country, regional and global levels.

The PPCR recently issued a call for Expressions of Interest (EOI) for a second phase of pilot countries.

Rwanda was one of six countries15 that were selected for the second phase. Following an EOI from the GoR,

Rwanda secured a USD 40 million investment from the PPCR to build resilience around water resources that

are critical to Rwanda’s long-term growth and development plans.

Pilot Programme for Climate Resilience

Rwanda has been selected as a pilot country and will develop a USD 40 million investment plan to build

resilience around water resources that are critical to Rwanda’s long-term growth and development plans.

Important to engage effectively with the AfDB in developing the investment plan and maintain the private

sector focus.

2.2 Forest Investment Program

One of the Climate Investment Funds (CIFs) established in 2008, administered by the World Bank, and

operated in partnership with regional development banks16. The USD 785 million Forest Investment Program

(FIP) supports developing countries’ efforts to reduce emissions from deforestation and forest degradation

and promote sustainable forest management and enhancement of forest carbon stocks (REDD+).

FIP pilot programs are intended to be country-led and country–owned, by building on, enhancing and

strengthening existing nationally prioritized REDD efforts, and respect national sovereignty. Funding is

channelled through the multilateral development banks (MDBs) as grants and near-zero interest credits. FIP

financing addresses:

1. promoting forest mitigation efforts, including protection of forest ecosystem services;

2. providing support outside the forest sector to reduce pressure on forests;

3. helping countries strengthen institutional capacity, forest governance, and forest-related knowledge; and

4. mainstreaming climate resilience considerations and contribute to biodiversity conservation, protection of

the rights of indigenous peoples and local communities, and poverty reduction through rural livelihoods

enhancements.

The FIP invests in the on-the-ground action needed to advance REDD+ in FIP pilot countries. Described as

the “missing middle,” FIP primarily focuses on REDD+ implementation activities (Phase 2), providing a crucial

15 Ethiopia, Gambia, Madagascar, Malawi, Rwanda and Uganda

16 The African Development Bank, the Asian Development Bank, the European Development Bank, and the Inter-

American Development Bank are the implementing agencies for FIP investments.


pull to incentivize REDD+ readiness activities (Phase 1) and exerting a push to develop needed capacity and

experience for countries to progress to results-based payments (Phase 3).

The FIP complements other REDD+ financing mechanisms, including Forest Carbon Partnership Facility

(FCPF), Global Environment Facility (GEF), UN Collaborative Programme on Reducing Emissions from

Deforestation and Forest Degradation in Developing Countries (UN-REDD Programme). To extend the FIP’s

reach beyond national investment plans and encourage more private sector participation, financing has also

been set aside to be awarded on a competitive basis for private sector projects advancing the goals of the FIP

within FIP pilot countries.

In order to qualify for funding FIP Investment Strategies, Programs and Projects should deliver

transformational change and go beyond business-as-usual, and are assessed according to:

climate change mitigation potential;

demonstration potential at scale;

cost-effectiveness;

implementation potential;

integrating sustainable development (co-benefits); and

safeguards.

The FIP is currently active in 8 pilot countries17 but recently issued a call for a second phase of pilot countries.

Although Rwanda did not qualify, the FIP agreed to provide USD 2.25 million to Rwanda and eight other non-

pilot countries for preparation of investment plans to enable it to access additional resources that may become

available either through the FIP or other bilateral or multilateral sources, including the Green Climate Fund18.

Forest Investment Program

Rwanda was not selected as a pilot country for the second phase but has qualified for a USD 2.25 million

grant to prepare an investment plan to access additional resources that may become available at a later date.

Important to engage effectively with the World Bank in developing the investment plan.

2.3 Scaling Up Renewable Energy in Low Income Countries Program

The USD 796 million Scaling Up Renewable Energy in Low Income Countries Program (SREP) is a funding

window of the USD 8.1 billion Climate Investment Funds. It was established to scale up the deployment of

renewable energy solutions in the world’s poorest countries to increase energy access and economic

opportunities. Channelled through five multilateral development banks (MDBs), SREP financing aims to pilot

and demonstrate the economic, social, and environmental viability of low carbon development pathways

building off of national policies and existing energy initiatives. The SREP is subject to the CIF 'sunset clause'

which enables closure of funds once a new financial architecture becomes effective under the UNFCCC

regime. Until such time, donors and recipients operate under the existing framework.

The SREP is designed to demonstrate the economic, social and environmental viability of low carbon

development pathways in the energy sector in low-income countries. It aims to achieve five main objectives:

1. assist low income countries foster transformational change to low carbon pathways by exploiting

renewable energy potential;

2. highlight economic, social and environmental co-benefits of renewable energy programs;

3. help scale up private sector investments to achieve SREP objectives;

17 Brazil, Burkina Faso, Democratic Republic of Congo, Ghana, Indonesia, Lao People’s Democratic Republic, Mexico,

and Peru

18 http://www.afdb.org/en/news-and-events/article/african-countries-reach-tipping-point-as-pilots-for-renewable-energy-

climate-resilience-and-sustainable-forests-14244/

http://www.afdb.org/en/news-and-events/article/african-countries-reach-tipping-point-as-pilots-for-renewable-energy-climate-resilience-and-sustainable-forests-14244/



4. enable blended financing from multiple sources to enable scaling up of renewable energy programs; and

5. facilitate knowledge sharing and exchange of international experience and lessons.

SREP has allocated USD 501 million to 44 projects and programs that expect USD 3.3 billion in co-financing

and aim to support the installation of 840 MW in renewable energy capacity and improve energy access for 14

million people—equal to the population of Senegal. To date, SREP USD 136 million (27% of allocations) is

approved for 12 projects with expected co-financing of USD 1 billion. Technologies supported include solar,

wind, bio-energy, geothermal, small hydro power, and cook stoves. Preference is given to projects with strong

poverty alleviation benefits. Economic and/or social development and environmental benefits are key criteria

for project selection. Eligible new renewable energy applications include:

1. grid and off-grid electricity applications including small hydro or biomass-based power, wind and solar

powered systems, and geothermal;

2. financing available for renewable electricity generation and use, and for transmission and distribution

grids; and

3. cooking and heating applications including sustainable community forests, improved cook stoves,

geothermal heating, and biogas or other renewable-based fuels.

The programme has recently expanded to include fourteen new countries19 (selected in June 2014) including

Rwanda. In Rwanda, SREP will support investments to scale-up renewable energy generation and facilitate

the development of the country’s sustainable energy agenda. Rwanda’s engagement in SREP activities is

expected to result in:

development of a clean energy IP for the first five years that would help Rwanda to scale up RE and

move towards low carbon development;

improved investment climate for private sector participation in the renewable energy sector; and

enhanced legal and regulatory frameworks in the renewable energy sector.

During Phase 1 of the implementation of the SREP, the African Development Bank (AfDB) and the World

Bank Group (WBG), including the International Finance Corporation (IFC), have been supporting the

Government of Rwanda and other relevant stakeholders - United Nations Organizations, bilateral partners,

private sector companies, non-governmental organizations and civil society organizations in developing the

SREP IP. It was agreed that the World Bank would be the “lead MDB” and therefore coordinate the joint effort

of the MDBs in the country. The finalisation and endorsement of the IP by the SREP Sub-Committee will mark

the beginning of implementation (Phase 2).

Since Rwanda was selected as a pilot country for the SREP, the Government has undertaken a number of

preparatory activities with support from MDBs, including: (i) the completion of a Scoping Mission containing

consultations with various national stakeholders; (ii) the request of USD 260,000 grant resources to support IP

preparatory activities; and (iii) the appointment of an individual consultant to support the Rwanda Energy

Group (REG) and technical team hosted in the Ministry of Infrastructure (MININFRA) with the preparation of

the SREP IP. The SREP Focal Point in Rwanda is Mr. Marcel Gakuba, Head of Studies, Research, and

Development in the Energy Development Corporation Ltd, Rwanda Energy Group20.

The next steps are:

1. Rwanda will use the preparation grant to prepare the investment plan;

2. submit the plan to SREP-SC Investment Plan for endorsement;

3. develop investment and financing proposals; and

19 Bangladesh, Benin, Cambodia, Ghana, Haiti, Kiribati, Lesotho, Madagascar, Malawi, Nicaragua, Rwanda, Sierra Leone,

and Zambia.

20 TERMS OF REFERENCE. Scaling-up Renewable Energy Program (SREP). Joint Mission June 23-26, 2015, Rwanda


4. submit to SREP-SC for approval of financing21.

Scaling Up Renewable Energy in Low Income Countries Program

Rwanda was recently selected as a pilot country for the SREP and is in the process of developing an

investment plan with the World Bank to scale-up renewable energy generation and facilitate the development

of the country’s sustainable energy agenda.

2.4 GEF Trust Fund - Climate Change focal area

Established in 1994, the Global Environment Facility Trust Fund supports the implementation of multilateral

environmental agreements, and serves as a financial mechanism of the UN Framework Convention on

Climate Change. It is the longest standing dedicated public climate change fund. Climate Change is one of the

six focal areas supported by the GEF Trust Fund. The GEF also administers several funds established under

the UNFCCC including the Least Developed Countries Trust Fund (LDCF), the Special Climate Change Trust

Fund (SCCF) and is interim secretariat for the Adaptation Fund. All GEF projects including LDCF and SCCF

are subject to a flat 10% agency fee, which is paid on top of the project grant. This covers the services of the

implementing agencies (UNDP, UNEP, IFAD, FAO, WB and others) in assisting the countries in preparing and

implementing the project.

The GEF aims to help developing countries and economies in transition to contribute to the overall objective

of the United Nations Framework Convention on Climate Change (UNFCCC) to both mitigate and adapt to

climate change, while enabling sustainable economic development. The GEF is intended to cover the

incremental costs of a measure to address climate change relative to a business as usual base line. Activities

supported include:

Climate Change Mitigation: Reducing or avoiding greenhouse gas emissions in the areas of

renewable energy; energy efficiency; sustainable transport; and management of land use, land-use

change and forestry (LULUCF)

Climate Change Adaptation: Supporting developing countries to become climate-resilient by

promoting both immediate and longer-term adaptation measures in development policies, plans,

programs, projects, and actions.

All adaptation related work for the GEF-5 2010–14 cycle is financed through the LDCF and SCCF. The

activities supported by GEF 5 are in accordance to its 6 strategic objectives to promote and support:

demonstration, deployment, and transfer of innovative, low-carbon technologies.

Projects are expected to achieve the following objectives:

Market transformation for energy efficiency in the industrial and buildings sectors

Investment in renewable energy technologies

Energy-efficient, low-carbon transport and urban systems

Conservation and enhancement of carbon stock through sustainable management of land use, land-

use change, and forestry

Enabling activities and capacity building

The GEF Trust Fund is replenished every 4-years. The GEF Trust fund has received a total of $15.225 billion

during its five replenishments. Under GEF 4, Rwanda received a grant of USD 4.5 million for the Sustainable

Energy Development Project (SEDP). Under the fifth replenishment (2011 – 2014), 40 donor countries

pledged USD 1.35 billion to the climate change focal area. GEF 5 has approved a total of USD 799 million for

232 projects. The sixth replenishment (2015-2018) will allow GEF to make an estimated USD 3 billion

available for climate change, with 30 donor countries pledging USD 4.43 billion over all focal areas.

21 http://www.afdb.org/en/news-and-events/article/african-countries-reach-tipping-point-as-pilots-for-renewable-energy-

climate-resilience-and-sustainable-forests-14244/




There are five focal area strategies: (i) biodiversity (USD 1296 million); (ii) climate change mitigation (USD

1260 million); (iii) chemicals and waste (USD 554 million); (iv) international waters (USD 456 million); and (v)

land degradation (USD 431 million). The most relevant areas for Rwanda’s agriculture sector are climate

change mitigation and land degradation.

Within climate change mitigation, key mitigation efforts include low emission technologies and land use, land-

use change and forestry (LULUCF) options. Programme 4 of this focal area promotes conservation and

enhancement of carbon stocks in forest, and other land-use, and support climate smart agriculture.

Within the land degradation focal area, there are a number of programmes that are relevant to agriculture.

Programme 1 targets agro-ecological intensification which builds on planned or existing initiatives addressing

improvements in genetic resources and use of inputs, institutional frameworks to strengthen capacity of

smallholder farmers, and efficient marketing and extension programs. Areas supported under this programme

include:

1. Agro-ecological methods and approaches including conservation agriculture, agroforestry, etc.;

2. Improving rangeland management and sustainable pastoralism, regulating livestock grazing pressure

through sustainable intensification and rotational grazing systems, increasing diversity of animal and

grass species, and managing fire disturbance;

3. Strengthening community-based agricultural management, including participatory decision-making by

smallholder farmers and diversification of farms and practices at scale;

4. Integrated watershed management, including wetlands where SLM interventions can improve hydrological

functions and services for agro-ecosystem productivity;

5. Implementing integrated approaches to soil fertility and water management.

Programme 2 aims to increase the role of sustainable land management in agro-ecosystem resilience through

Climate-Smart Agriculture. A number of areas are supported including:

1. Agricultural land management systems that are resilient to climate shocks (drought, flood).

2. Improving management of impacts of climate change on agricultural lands (including water availability) to

enhance agro-ecosystem resilience and manage risks.

3. Diversification of crops and livestock production systems through SLM to enhance agro-ecosystem

resilience and manage risks; e.g. Integration of tree- based practices into smallholder crop-livestock

systems to increase resilience.

4. Mitigating impacts of climate change on agricultural lands using SLM (e.g. water management practices)

to enhance agro-ecosystem resilience and manage risks.

5. Applying SLM strategies and other ecosystem-based climate adaptation strategies for drought mitigation

in drylands.

6. Applying innovative financial and market instruments (e.g. carbon finance with public and private sector

partners) to implement SLM practices that reduce GHG emissions and increase sequestration of carbon

on smallholder farms.

7. Rangeland management and sustainable pastoralism, focusing on SLM options for climate change

adaptation and grazing management to reduce GHG emissions.

There are also relevant programmes on: Land Management and Restoration (Program 3); Scaling-up

Sustainable Land Management through Landscape Approach (Program 4); and Mainstreaming SLM in

Development (Program 5).

A country is an eligible recipient of GEF grants if it is eligible to borrow from the World Bank or if it is an

eligible recipient of UNDP technical assistance. Any eligible individual or group may propose a project that

meets the following criteria:

consistent with national priorities and programs in an eligible country, and endorsed by the government;


addresses one or more GEF Focal Areas, improving the global environment or advance the prospect of

reducing risks to it;

consistent with the GEF operational strategy;

seeks GEF financing only for the agreed-on incremental costs on measures to achieve global

environmental benefits; and

involves the public in project design and implementation.

The GEF has 18 Partner Agencies. The Operational Focal Point22 decides which Agency would be best

suited to develop and implement the project idea. The GEF provides funding through four modalities: full-sized

projects, medium-sized projects, enabling activities and programmatic approaches. Each modality requires

completion of a different template.

GEF 6 has a suite of programmes that the agriculture sector could tap into including biodiversity, land

degradation, sustainable forest management and trans-boundary Cooperation in International Waters. The

DG REMA is currently the GEF focal point in Rwanda. The current portfolio of GEF 6 projects is shown in the

table below.

Table 4:

Title Focal Areas Agencies Type GEF

Grant

USD

Cofinancin

g

Status

Forest Landscape

Restoration in the

Mayaga Region.

REMA, Gisagara,

Ruhango, Nyanza and

Kamonyi Districts

Biodiversity,

Land

Degradation,

Climate

Change, Multi

Focal Area

United

Nations

Developme

nt

Programme

Full-size

Project

6,213,538

GEF

Trust

Fund

25,777,500 Receive

d by

GEF

Secretar

iat 10

Feb

2016

Enabling Activities to

Review and Update the

National Implementation

Plan for the Stockholm

Convention on

Persistent Organic

Pollutants (POPs)

REMA

Persistent

Organic

Pollutants

United

Nations

Industrial

Developme

nt

Organizatio

n

Enabling

Activity

180,000

from GEF

Trust

Fund

190,000 Project

Approve

d 7 Mar

2013

Landscape Approach to

Forest Restoration and

Conservation (LAFREC)

REMA

Biodiversity,

Land

Degradation,

Climate

Change, Multi

Focal Area

The World

Bank

Full-size

Project

9,532,000

Multi trust

fund

53,530,000 Project

Approve

d7 July

2014

22 The Operational Focal Point (OFP) coordinates all GEF-related activities within a country. In Rwanda the OFP is the DG

REMA. The OFP reviews project ideas, checks against eligibility criteria and ensures that new project ideas will not

duplicate an existing project. Before contacting the Operational Focal Point, we suggest that you review the eligibility

criteria (below) and check the Country Profile.


GEF Trust Fund

Rwanda has a number of pipeline and ongoing projects supported by this fund. GEF 6 has funding through to

2018 at which stage an additional replenishment is expected for GEF 7. There is good alignment of sectoral

priorities with the fund and significant levels of funding are available. There are a number of potential areas to

focus that could be targeted to support climate smart agriculture, integrated soil fertility management,

sustainable land management and mitigation of emissions from agriculture and livestock production systems.

Agri-TAF can follow up with DG REMA to explore the potential for another GEF 6 project.

2.5 Least Developed Countries Fund

The Least Developed Countries Fund (LDCF) was established under the United Nations Framework

Convention on Climate Change (UNFCCC) at its seventh session in Marrakech, Morocco, in 2001 and

operationalised in 2002. The LDCF focuses on the “urgent and immediate adaptation needs” of the 48

UNFCCC-accredited least developed countries.

LDCF is one of the largest funds available for adaptation and has approved the largest volume of adaptation

finance for Sub-Sahara Africa. As of June 30, 2015, the total amount pledged was $934.7 million. Of this,

payments amounting to $929.1 million have been received. However, the demand for LDCF resources

considerably exceeds the funds available for new approvals. As at June 30, 2015, there were USD 10.5

million available for new funding approvals. Each LDC can access up to $30 million from the LDCF in

accordance with the principle of equitable access.

LDCF funds are intended to be used on the most urgent adaptation needs articulated in each LDC’s National

Adaptation Programme of Action (NAPA). Alignment of proposed projects with NAPA priorities is therefore an

important requisite for accessing funds.

Funds to date have been used as “fast finance” for pilot projects (USD 1-5 million). However, LDCF (and

SCCF) are currently trying to expand their scale and scope through a programmatic approach (i.e. moving

away from a project by project approach) although this will only be possible if the volume of financing

increases significantly. Agri-TAF therefore needs to track these developments and assess their implications

for accessing the fund for future projects.

To qualify for LDCF (and SCCF) funding, the proposals must demonstrate additional cost reasoning, that is

the grants can only be used for those costs that are additional to a development baseline and are directed

towards adaptation. Activities that would be implemented in the absence of climate change constitute a

project baseline, (or business-as- usual). LDCF therefore only funds the incremental cost of adaptation

activities, it relies on co-financing from development partners to pay for the business-as-usual part of the

project. The altered plan of action required to implement adaptation measures needed to reduce vulnerability,

build adaptive capacity, and an overall increase of resilience to climate change, comprises the LDCF (or

SCCF) financed adaptation project or program.

In cases where no baseline of activities can be identified, the LDCF will pay the full-costs of the adaptation

project, provided that it targets an urgent and immediate need as defined in the NAPA. Proposals must also

be cost-effective, sustainable and measures in place for risk mitigation.

LDCF operates out of GEF facilities and uses its structures to assess, approve and evaluate projects. GEF

provides a standard project cycle management fee (5%) to implementing agencies to manage GEF and LDCF

project implementation.

The funds can be accessed by public or civil society entities by submitting a standard 4 page Project

Identification Form (PIF) through one of GEF agencies23. In fact the GEF Agency prepares the PIF with the

23 GEF develops its projects through ten Implementing Agencies: the UNDP, UNEP the World Bank, the AfDB, the ADB,

the EBRD, the IAD, the IFAD, the FAO, and the UNIDO.


Operational Focal Points (OFP)24. The PIFs are then screened quite rapidly by the GEF Secretariat and if

approved, passed onto the LDCF Council for final approval. A full proposal is then developed within 18

months with a Preparation Grant if required. The OFP endorses the proposal and facilitates consultations,

execution and co-ordination of the projects. If the projects are less than US$ 2 million, a Full Proposal can be

submitted directly to the GEF Secretariat and GEF CEO.

So far Rwanda has had 2 projects funded by the LDCF totalling USD 14.3 million.

1. Increasing the Capacity of Vulnerable Rwandan Communities to Adapt to Adverse Effects of Climate

Change: Livelihood Diversification and Investment in Rural Infrastructures. The executing entity is EWSA

and partner agency is AfDB. USD 8.8 million. Approved May 2016.

2. Building Resilience of Communities Living in Degraded Forests, Savannahs and Wetlands of Rwanda

Through an Ecosystem Management Approach. The executing entities are REMA, MINIRENA, MINAGRI

and partner agency is UNEP. USD 5.5 million. Approved Nov 2015.

In addition, one project awaits approval by the fund:

1. Building the Capacity of Rwanda’s Government to advance the National Adaptation Planning process.

The executing entity is REMA and partner agency is UNEP. USD 6 million. Received by GEF Secretariat

29 Sep 2014.

Least Developed Countries Fund

Rwanda has already accessed this fund on a number of occasions and is currently implementing two projects.

The limited availability of funds and high demand from LDCs trying to access the fund reduces the potential

for exploiting these funds at this current time. However, it will be important to periodically check on the level of

funds available and the status of the country cap on funding as the LDCF is a major source of adaptation

finance. Important also to track developments on LDCF’s plans to adopt a programmatic approach to funding.

2.5.1 Special Climate Change Fund

The Special Climate Change Fund (SCCF) was established in 2001 and operationalised in 2004. Whereas

LDCF provides financing for least developed countries only, the SCCF is accessible to all non-Annex I

countries that are parties to the United Nations Framework Convention on Climate Change (UNFCCC). As of

June 30, 2015, the total amount pledged was $349.1 million. The SCCF has approved USD 351.2 million

since its inception across 90 countries. Net funds available for amount to just $4.3 million. As at September

26, 2014, ten GEF Agencies were involved in SCCF operations, with the World Bank holding the largest share

of the portfolio at 32% of total funds approved, followed by UNDP at 25 per cent25. The governing body of the

SCCF is the LDCF/SCCF Council which meets two times a year.

SCCF is designed to finance activities, programs and measures related to climate change in the areas of: a)

adaptation, b) technology transfer, c) mitigation in selected sectors (energy, transport, industry, agriculture,

forestry and waste management), and (d) economic diversification. Among these four categories, only the

adaptation and technology transfer windows are currently active - adaptation has the top priority. Of the total

resources approved, USD 240.99 million were for 57 projects under the SCCF Adaptation Program (SCCF-A),

while 11 projects had been approved under the SCCF Program for Technology Transfer (SCCF-B), with total

grant resources amounting to USD 55.48 million.

24 designated by each country to receive GEF funding, be responsible for operational aspects of GEF activities such as,

endorsing project proposals to affirm that they are consistent with national plans and priorities and facilitating GEF

coordination, integration, and consultation at the country level

25 17th LDCF/SCCF Council Meeting October 30, 2014, Washington, DC


SCCF activities are based primarily on NAPAs (in least developed countries) or national communications26.

The SCCF priority funding areas are: water resource management; land management; agriculture;

infrastructure development; and fragile ecosystems and integrated coastal zone management.

SCCF requires that projects and programs should be: 1) country-driven, cost-effective and integrated into

national sustainable development and poverty-reduction strategies; and, 2) take into account national

communications or NAPAs and other relevant studies and information. Funding is available as grants to public

and civil society entities. The SCCF follows a similar process to LDCF for funding projects including the

requirement for additional cost reasoning.

The process for applying for funding is to develop a concept for a project and request assistance from an

Implementing Agency of the GEF and submit to the national GEF Operational Focal Point. Projects over USD

1 million are referred to as Full-sized Projects (FSP); those of USD 1 million or below are referred to as

Medium-sized Projects (MSP.) MSPs follow a streamlined project cycle, compared to FSPs. For FSPs,

submission to the GEF under the SCCF starts with a Project Identification Form (PIF), followed by a CEO

Endorsement Form. MSPs may start with the CEO Endorsement Form. Once the GEF CEO Endorses the

project, the funding is released to the Implementing Agency. The PIF is reviewed by the GEF Secretariat and

then the Council. The full proposal is then developed over a period of up to 18 months.

Special Climate Change Fund

Rwanda has so far not managed to access this fund. The shortage of funding to finance existing pipeline

concepts reduces the potential for exploiting these funds at this current time. Periodic checks on the level of

funds available and the status of the country cap on funding could be made to monitor flows to the fund and

identify potential opportunities.

2.5.2 Adaptation Fund

The Adaptation Fund (AF) was established in 2009 by the Parties to the United Nations Framework

Convention on Climate Change (UNFCCC) and is mandated to provide grants for concrete adaptation

projects and programmes in developing countries that are vulnerable to climate change and are Parties to the

Kyoto Protocol. It has a total capitalisation of US$ 539.1 million (as off the end of 2015), including US$ 195.8

million from CER sales, US$ 343.4 million from donations, and US$ 4.3 million from investment income

generated by the trustee. Funds available for new project and programme approvals had amounted to US$

177.7 million at year-end 2015.

The Adaptation Fund is unique from other funds in that it derives revenue from a 2% levy on the sale of

emission credits (Certified Emission Reductions - CERs) from the Clean Development Mechanism as well as

contributions from bilateral agencies and private donations. However, the collapse of carbon markets

reflecting oversupply and weak demand27 has diminished the finance available to the AF and the fund is now

largely dependent on donations.

AF also has a “direct access” modality enabling recipient countries to access financial resources directly from

the fund, or assign a National Implementing Entity28 of their choosing. Direct access is in contrast to indirect

access, where funding is channelled through a third party implementing agency, usually a multilateral

organization, selected by the fund administrators. This move was intended to secure greater national

ownership over funded activities, whilst maintaining high fiduciary standards and minimising transaction costs.

26 reports by non-Annex I countries summarizing a country's mitigation and transfer; energy, transport, industry,

agriculture, forestry and waste adaptation needs

27 Over the past year, the price of Certified Emission Reductions has fallen from € 12.00 per ton of CO2-equivalent

emissions to less than € 1.00 per ton

28 All implementing entities (both NIEs and multilateral implementing entities, MIEs) that seek AF accreditation must

demonstrate they meet certain fiduciary standards to ensure that funds are used effectively and transparently for the

purposes assigned by the Adaptation Fund.


Where countries do not have an AF accredited National Implementing Entity, they can access funds through a

Multilateral Implementing Entity (MIE). However, the fund has limited the amount of finance channelled

through MIEs. The fund recently launched a pilot programme on regional projects, not to exceed USD 30

million, to enable greater partnerships among RIEs, MIEs, NIEs, and other national institutions, including

engaging other bodies under the Convention29.

Financing is provided on a ‘full adaptation cost basis’ to address the adverse effects of climate change. AF

finances projects/programmes whose principal and explicit aim is to adapt and increase climate resilience.

Projects/programmes have to be concrete with “visible and tangible impacts” and must include a knowledge

component. There is no requirement for co-financing and the fund is open to all developing countries that are

parties to the Kyoto Protocol are eligible. There is currently a cap of US$ 10 million per country.

In 2015, the AF launched its Pilot Programme for Regional Activities which will entail one or more regional

project/programme of up to USD 30 million. The programme is open to Regional Implementing Entities and

Multi-lateral Implementing Entities, partnering with National Implementing Entities.

The fund is open to grant applications from public, private and civil society entities. The process entails the

submission of a Project Concept through the NIE or MIE which, if approved is converted into a Full Proposal

for review by the AF Secretariat and final approval by the AF Board. Smaller projects (US$ <1 million) can

submit a Full Proposal without a Project Concept.

The project is then implemented by an executing entity which is distinct from the NIE which oversees the

development and approval of projects and monitors their results. Civil society and local community

organizations as well as private sector and public entities can serve as executing entities for adaptation

projects.

MINIRENA is the accredited NDA and has received a USD 10 million grant for one project so far: “Increasing

the adaptive capacity of natural systems and rural communities, living in exposed areas of North Western

Rwanda, to climate change impacts”. The project is currently under implementation by RNRA. Currently, the

AF applies a funding cap of USD 10 million to each country so until this is raised, there is limited scope to

access funds from the AF although funds can be accessed through regional projects implemented by

Mutilateral Implementing Entities.

Adaptation Fund

Rwanda has reached the current country cap of USD 10 million imposed due to funding constraints. Periodic

checks on the level of funds available and the status of the country cap on funding should be made to ensure

the GoR can capitalise on any change in the country cap.

2.5.3 Global Climate Change Alliance

The Global Climate Change Alliance (GCCA) is a European Union initiative that focuses on Least Developed

Countries and Small Island Development States as well as African countries affected by drought,

desertification and flooding. The Fund set up in 2007, attracted increasing contributions €316.5 million (USD

356.5 million) between 2008 and 2014 making it one of the largest climate initiatives in the world30. The

funding originates from the EU budget, the 10th European Development Fund (EDF) and contributions from

Ireland, Sweden, Estonia, Cyprus and the Czech Republic. The GCCA works through the European

Commission’s established channels for cooperation at national and international level.

The GCCA supports 51 programmes in 38 countries and 8 regions and sub-regions across the globe, and

more programmes are in preparation. To date, €234 million has been committed to support national

programmes. The GCCA supports the mainstreaming of climate change into national development planning in

two thirds of these countries. The five GCCA priority areas include:

29 ADAPTATION FUND BOARD Twenty-fourth Meeting Bonn, Germany 9-10 October 2014

30 http://www.gcca.eu/about-the-gcca/financial-resources

http://www.gcca.eu/about-the-gcca/financial-resources


mainstreaming climate change into poverty reduction and development strategies,

adaptation, building on the National Adaptation Programmes of Action (NAPAs) and other national

plans,

disaster risk reduction (DRR),

reducing emissions from deforestation and forest degradation (REDD), and

enhancing participation in the Global Carbon Market and Clean Development Mechanism (CDM).

The first two priority areas are the most relevant for agriculture. Under mainstreaming climate change, the

GCCA supports the systematic integration of climate change considerations into national development

planning, from policymaking and budgeting to implementation and monitoring. This focuses on institutional

strengthening and is often combined with another priority, in particular adaptation.

Under adaptation, the GCCA aims to help improve knowledge about the effects of climate change and the

design and implementation of appropriate adaptation actions, in particular in the water and agriculture sectors,

that reduce the vulnerability of the population to the impacts of climate change. The GCCA builds on National

Adaptation Programmes of Action (NAPAs) and other national plans.

As well as supporting individual countries, the GCCA is active at the regional level, supporting programmes

that tackle climate change issues that cross the borders of individual countries. To date, €60.8 million has

been committed to support regional programmes31. GCCA has supported the development of adaptation

plans in vulnerable countries, and is financing pilot adaptation projects in the water and agricultural sectors

and on sustainable natural resource management.

To be eligible for GCCA funds, a country has to be among the 73 LDCs or SIDS recipients of aid. The fund

applies additional criteria to prioritise countries for support. These include vulnerability to climate change,

importance of agriculture, an assessment of the country’s adaptive capacity, level of engagement on climate

change and level of interest in receiving GCCA support.

The fund is open to Government and civil society organisations and funds are accessed by sending an

Expression of Interest to the EU Delegation in country. Funds are allocated based on population figures and

on availability of funds. There are a number of funding modalities used by GCCA including: projects (77%),

sector budget support (8%), general budget support (8%) and sector policy support programme (8%).

In addition, training and technical assistance services related to climate change are available for government

agencies of ACP countries, through the GCCA's Intra-ACP Programme. Funding is released solely through

grants. This programme provides technical support to a variety of existing initiatives related to adaptation and

mitigation to climate change. There are two types of support: 1) Training Workshops and 2) Short-Term

Technical Assistance. The programme provides support by contracting one or more experts to complete a

proposed task. Direct financial support is not included only the TA. The technical support must contribute to

one or more of the 5 GCCA+ Priority Areas above.

The TA can be used to carry out feasibility studies, project identification or formulation, climate funding

requirements and access to funds, capacity building, training and workshops, curriculum development, policy

development, technical advice, and other activities related to climate change. Additional information and an

application form can be obtained by contacting the following email: [email protected].

In the past, Rwanda has accessed GCCA funding through budget support (USD 5.72 million) for the delivery

of the land tenure reform process which was completed in 2013. There are currently no national programmes

active in Rwanda. However, the GCCA supports a number of regional initiatives that include Rwanda. This

includes the Programme on Climate Change Adaptation and Mitigation in the COMESA-EAC-SADC

Region which seeks to build successful adaptation and mitigation actions across Eastern and Southern

Africa. The programme works with three Regional Economic Communities and targets smallholder famers.

Interventions include scaling-up and mainstreaming climate-smart agriculture and sustainable land

management practices. The GCCA was the first funder of the programme, contributing 4 million Euros from

31 http://www.gcca.eu/about-the-gcca/financial-resources

mailto:[email protected]

http://www.gcca.eu/about-the-gcca/financial-resources


2010 to 2014, and the programme received approximately 50 million Euros from Norway and the United

Kingdom that will continue operations into 2016. Part of the support to Rwanda included support to design a

climate smart agriculture Investment Framework (including climate proofing the National Agriculture

Investment Plan).

Another regional programme is the GCCA Intra-ACP Climate for Development in Africa (ClimDev)

Programme which is intended to respond to climate change and variability challenges for Africa's

development, with a focus on climate sensitive sectors (i.e. agriculture, food security, water resources, energy

and health). The ClimDev programme has also supported a climate observation network in Rwanda through

the Enhancing National Climate Services (ENACTS) which is an integrated platform aimed at accelerating

efforts to improve the availability, access and use of climate information at the national level in African

countries.

Global Climate Change Alliance

Rwanda has already accessed this fund for budget support and it is possible that further funding may be

available given the resources committed. There is good alignment of funding priorities with sectoral and

national priorities and potential to access funding for climate mainstreaming and adaptation. The Ministry

could make an approach to the EU delegation in Kigali to explore the potential of accessing further funds

particularly under the 4 funding modalities (projects, sector budget support, general budget support and sector

policy support programme).

2.5.4 Adaptation for Smallholder Agriculture Program

Launched in 2012 by the International Fund for Agriculture and Development, the Adaptation for Smallholder

Agriculture Programme (ASAP) channels climate finance to smallholder farmers so they can access the

information tools and technologies that help build their resilience to climate change. ASAP is the largest global

financing source dedicated to supporting the adaptation of poor smallholder farmers to climate change. The

programme is working in more than thirty developing countries, using climate finance to make rural

development programmes more climate-resilient. Financed by IFAD and the governments of Belgium,

Canada, Finland, Netherlands, Norway, Sweden, Switzerland and United Kingdom, the fund has so far

disbursed more than USD 300 million channelled to at least eight million smallholder farmers. Examples of

ASAP-supported initiatives on its website include:

mixed crop and livestock systems which integrate the use of drought-tolerant crops and manure,

which can help increase agricultural productivity while at the same time diversifying risks across

different products;

systems of crop rotation which consider both food and fodder crops, which can reduce exposure to

climate threats while also improving family nutrition; and

a combination of agroforestry systems and communal ponds, which can improve the quality of soils,

increase the availability of water during dry periods, and provide additional income.

ASAP has 5 outcomes:


2. increased availability of water and efficiency of water use for smallholder agriculture production and

processing;

3. increased human capacity to manage short- and long-term climate risks and reduce losses from weather-

related disasters;

4. rural infrastructure made climate-resilient; and

5. knowledge on Climate Smart Smallholder Agriculture documented and disseminated.

With an envisaged delivery of USD 150 million per year, ASAP supports efforts through NAPAs, PPCRs and

other national and international policy efforts, to deliver supportive, concrete investment outcomes for

smallholders at scale. Developing countries members are able to access ASAP’s co-financing targeted


specifically at scaling up and integrating climate change adaptation in smallholder development programmes.

IFAD‘s country programmes bid for funds on a case-by-case basis and lead on identification, development

and implementation of ASAP co-financing. Projects are proposed via Regional Division Directors. Government

counterparts including, where possible, gender experts and representatives of marginalised groups, are

intended to be in the lead.

The key selection criteria are i) the additionality of the ASAP funding to the project that it is co-financing (for

example, whether the grant will provide genuine added value to a project and is not simply displacing other

forms of public or private finance/activities); and ii) whether the ASAP-supported project is given strong

support from the beneficiary Government, the relevant IFAD Regional Division country team and communities

of smallholders including women and marginalized groups. In addition, potential project contributions towards

the ten key indicators of ASAP Results Framework are taken into account:

1. number of poor smallholder household members whose climate resilience has been increased because of

ASAP, disaggregated by sex,

2. size of the overall resulting investment,

3. project leverage ratio of ASAP versus non-ASAP financing,

4. tonnes of GHG emissions (CO2e) avoided and/or sequestered,

5. increase in number of non-invasive on-farm plant species per smallholder farm supported,

6. increase in hectares of land managed under climate-resilient practices,

7. percentage change in water use efficiency by men and women,

8. number of community groups including women‘s groups involved in ENRM and/or DRR formed or

strengthened,

9. value of new or existing rural infrastructure made climate-resilient, and

10. number of international and country dialogues to which the project would make an active contribution.

Grants size typically range from USD 3 million to 15 million depending on the overall size of the co-financed

operation and the nature of the project.

ASAP is providing an additional US$7 million to an existing IFAD project in Rwanda (US$ 33.9 million), the

Climate Resilient Post-Harvest and Agribusiness Support Project. The goal of this five- year project (2013 -

2018) is to alleviate poverty, increase the incomes of smallholders and rural labourers – including women,

youth and vulnerable groups – and contribute to overall economic development in Rwanda. The project will

demonstrate pro-poor and climate-resilient approaches to post-harvest activities undertaken amidst increasing

climatic uncertainty.

The target group comprises poor smallholder farmers engaged in production or processing of specific priority

crops and dairy products. This group includes poor farmers with some production potential, members of

cooperatives who own small land plots, and smallholders who supplement their income through agricultural

wage work. Project components include the following:

1. Capacity development and business coaching for cooperatives, farmers' organizations and small and

micro-enterprises involved in delivering produce to market

2. Support for agribusiness investment in climate-resilient drying, processing, value addition, storage,

logistics, distribution and other post-harvest activities that reduce product losses and increase incomes.


Adaptation for Smallholder Agriculture Program

Rwanda has already accessed this fund for one project but it is possible that further funding may be available

to co-finance a large scale investment. Agri-TAF can consult with colleagues in MINAGRI and further advice

of funding availability for new projects can be sought from the IFAD country office in Kigali.

2.6 Bilateral climate funds

2.6.1 UK’s International Climate Fund

The UK established its cross-departmental International Climate Fund in 2011 as the primary channel of UK

climate change finance. The ICF is capitalised with GBP 3.87 billion and is designed to help developing

countries adapt to climate change, embark on low carbon growth and tackle deforestation between April 2011

and March 201632. The ICF is managed by a high level cross-departmental project team with representation

from the Department for International Development (DFID), the Department of Energy and Climate Change

(DECC), the Finance Ministry (Her Majesty’s Treasury), the Department for Environment, Food and Rural

Affairs (DEFRA), and the Foreign and Commonwealth Office (FCO).

The UK committed to provide USD 5.95 billion for international climate scaling up UK climate finance and has

channelled the majority of its currently deposited USD 1.32 billion through dedicated multilateral funds,

particularly the CIFs, but is in the process of revising this strategy. The fund has an approximate thematic split

of its spend: 50% for adaptation; 30% for low carbon development, and 20% for forestry. So far the fund has

approved USD 573 million for projects.

Although the fund offers bilateral support to individual countries, the majority of its finance has been

channelled through other dedicated climate funds including the PPCR the LDCF and the Adaptation Fund.

The ICF's funding portfolio is split between capital contributions/concessional loans and grant finance. The

majority of contributions to multilateral funds (CIFs, etc.) are in the form of concessional capital. Grants are

used primarily as a mechanism for bilateral contributions. The ICF is designed to be responsive to country

needs and well integrated into countries’ own sustainable development plans and strategies.

The ICF aims to drive urgent action to tackle climate change by supporting low carbon growth and adaptation

in developing countries. Specifically, the ICF has three objectives:

1. to demonstrate that low-carbon, climate resilient growth is not only feasible, but desirable;

2. to support international climate change negotiations; and

3. to recognise that climate change offers new opportunities for private sector partnerships, innovation, and

sustainable development.

These priorities have thematic foci on adaptation, low-carbon development, and forestry projects.

Activities supported by the ICF include:

building global knowledge and evidence;

developing and scaling-up low-carbon and climate resilient programs;

building capacity in the public and private sectors and supporting country level action; and

mainstreaming climate change into UK development aid.

The ICF also supports strategic initiatives such as the Climate Public Private Partnership (CP3) which is

aimed at ‘tipping the balance’ for private investors and catalysing climate finance flows to developing

countries. The CP3 programme aims to demonstrate to major private sector investors that climate friendly

investments are financially viable. As part of this, the UK is investing GBP 110 million (US$ 171 million) in two

32 https://www.gov.uk/government/publications/2010-to-2015-government-policy-climate-change-international-action/2010-

to-2015-government-policy-climate-change-international-action#appendix-8-international-climate-fund-icf

https://www.gov.uk/government/publications/2010-to-2015-government-policy-climate-change-international-action/2010-to-2015-government-policy-climate-change-international-action#appendix-8-international-climate-fund-icf

https://www.gov.uk/government/publications/2010-to-2015-government-policy-climate-change-international-action/2010-to-2015-government-policy-climate-change-international-action#appendix-8-international-climate-fund-icf


new private equity funds that will invest in sectors including water resource management in developing

countries with the aim of leveraging private co-investment. CP3 also provides technical assistance to support

the development of the project pipeline and facilitate pioneering projects.

There is no direct route through which an organisation outside of the UK Government can independently

develop a project to be considered for ICF funding. Proposals come forward through DFID country offices or

central departments as well as from DECC and Defra. Often the delivery partners of individual projects include

the private sector, civil society organisations and academic institutions but the proposal has to be sponsored

and managed by one of the three UK Government Departments. If approved, DFID (or FCO) develop a

concept note and then a business case in partnership with the host Government and/or other multilateral

agencies that might be interested in co-financing for approval by the ICF Board.

The International Climate Fund (ICF) of the UK government is currently considering new delivery options for

the disbursal of its resources. Options includes using the UK Green Investment Bank, the Private

Infrastructure Development Group (PIDG) and CDC1 as potential delivery vehicles for some of its resources33.

The GoR received USD 0.37 million to Draft a National Climate Change and Low Carbon Development

Strategy implemented through the World Bank and GBP 22 million to capitalise and provide TA for

FONERWA.

UK’s International Climate Fund

Rwanda has already accessed significant support from this fund via DFID for the establishment and initial

capitalisation. Further funding is dependent on ongoing discussions with DFID and the outcome of a DFID

business case made to the fund.

2.6.2 B2. Germany’s International Climate Initiative

The International Climate Initiative (ICI) was launched by the German Government in 2008 to provide grants

and loans to finance climate projects in developing and newly industrialised countries, as well as countries in

transition economies. The ICI operates through GIZ and promotes climate-friendly economies, measures for

climate change adaptation and for the preservation or sustainable use of carbon reservoirs/Reducing

Emissions from Deforestation and Forest Degradation (REDD). The fund receives €120 million (US$ 155

million) per year from the German Government.

Since the IKI was launched in 2008 until the end of 2014, BMUB has initiated 446 projects with €1.6 billion in

funding. The fund is open to Governments, NGOs, multilaterals, research institutes and the private sector.

Most of the projects are regional or global with many countries participating. For single country projects the

funds allocated tend to range from €2-6 million.

The initiative is innovatively funded partly through sale of national tradable emission certificates, providing

finance that is largely additional to existing development finance commitments. Additional capital contributed

by the agencies implementing the projects and funding from other public and private-sector sources bring the

total volume disbursed for ICI projects to over €2.2 billion (USD 2.8 billion)34.

The ICI supports projects carried out in partner countries by federal implementing agencies, government

organisations, NGOs, business enterprises, universities and research institutes, and by international and

multinational organisations and institutes, e.g. development banks and United Nations bodies and

programmes.

The ICI finances and supports climate change mitigation, adaptation and biodiversity projects (up to 6 years)

to help trigger private investments of a greater magnitude. The fund aims to promote measures for climate

33 Delivery options for the International Climate Fund Report prepared for ICF spending departments Final Report June

2014

34 http://unfccc.int/adaptation/implementing_adaptation/adaptation_funding_interface/items/4885.php

http://unfccc.int/adaptation/implementing_adaptation/adaptation_funding_interface/items/4885.php


change adaptation by supporting appropriate national programmes in selected partner countries that are

especially vulnerable to climate change. This includes developing and implementing national adaptation

strategies in partner countries that are particularly vulnerable to climate change.

Support can be granted for technology cooperation, policy advice, capacity building and training, and for the

elaboration of studies and strategies. Projects should be innovative in character (technologically,

economically, methodologically, institutionally), integrated into national strategies, and contribute to national

economic and social development. IKI supports projects across four areas of support:

1. mitigating greenhouse gas emissions,

2. adapting to the impacts of climate change,

3. conserving natural carbon sinks with a focus on reducing emissions from deforestation and forest

degradation (REDD+), and

4. conserving biological diversity.

Within 2, there are 4 areas of focus: ecosystem-based adaptation (EbA), climate-related risk management

instruments, such as innovative insurance solutions, and the development and implementation of national

adaptation strategies (including the optimisation of land use and water management concepts and the

integration of adaptation aspects into cross-sector strategies). Currently this area accounts for 10% of the

portfolio.

Within 3, there are 4 areas: Redd+ mechanism - keeping forests intact for climate change mitigation;

Ecological and social standards and additional benefits of carbon sequestration; Bonn challenge: restoring

forest landscapes (including innovative approaches in forest landscape restoration and developing tools and

financing instruments in order to scale-up efforts) ; and Monitoring, reporting and verifying redd+. Currently

this area accounts for 16% of the portfolio. Within 4, there are 2 areas: Mechanisms for planning and

managing biological diversity; and Protected areas and ecosystem services. Currently this area accounts for

13% of the portfolio.

The application process begins with a formal request for proposals from the Federal Ministry for the

Environment, Nature Conservation and Nuclear Safety (BMU). The applicant submits a Project Outline to the

BMU for pre-selection which then requests a formal application for final review.

One of the criteria used to select projects is the country’s contribution to international climate cooperation, in

particular in the context of the UN climate negotiations through support for implementation of the Cancun and

Durban Agreements, climate-related negotiations within the framework of the Montreal Protocol and/or

contribution to international cooperation in the context of the CBD processes through support for

implementation of the CBD Strategic Plan 2011-2020.

Proposals are scored on the basis of:

potential for mobilising additional funding, private investments in particular, as well as sustainable

business models for climate change mitigation and biodiversity conservation measures;

innovation - ICI projects should follow technologically, environmentally, methodologically or

institutionally ambitious and replicable approaches that are transferrable and that achieve results

beyond individual projects;

transparency of government structures handling climate financing; and

ability to learn and communicate lessons.

Grant recipients must also demonstrate relevant expertise in implementing international cooperation projects

jointly with partners in the region, or that they have been successfully involved in project-related activities for

at least three years. The government of the partner country must express an explicit interest in the project.

The GoR has received two grants from the ICI:

1. USD 0.25 million grant to conduct a pilot study examining the feasibility of investment in forest and

landscape restoration in Rwanda implemented through IUCN, and

2. USD 2.29 million to preserve Biodiversity in the Nyungwe Forest


The GoR has also recently submitted a EUR 6 million concept note to the fund to develop an EBA decision

support system to increase agricultural productivity in Rwanda.

Germany’s International Climate Initiative

Rwanda has already accessed significant support from this fund for two projects and has recently submitted a

€6 million grant proposal to the fund to develop an EBA decision support system to increase agricultural

productivity in Rwanda. FONERWA awaits a decision from BMUB on whether a full proposal is required.

Future funding applications can only be made if requested by the BMUB.


Annex 3 Other Projects

Trees for Food Security Project- Improving sustainable productivity in farming systems and

enhanced livelihoods through adoption of Evergreen agriculture in eastern Africa Project

Jun 2012 to Nov 2016

A regional project with Burundi, Ethiopia, Rwanda, Uganda funded by the Australian Centre for International

Agriculture Research (ACIAR), the Trees for Food Security Project aims to enhance food security for

resource-poor rural people in Eastern Africa through research that underpins national programmes to scale up

the use of trees within farming systems in Ethiopia and Rwanda and then scale out successes to relevant

agro-ecological zones in Uganda and Burundi. The specific objectives of the project are:

1. To characterize target farming landscapes and systems, and develop tools for matching species and

management options to sites and circumstances.

2. To generalize predictions of impacts of tree species and management on crop productivity, water

resources and nutrients at field, farm and landscape scales to inform scaling up to improve food security

and reduce climate risk.

3. To develop effective methods and enabling environments for scaling up and out the adoption of trees on

farms.

4. To develop databases and tools for monitoring and evaluation of the impact of scaling up and out the

adoption of trees on farms.

5. To enhance capacity and connectivity of national partner institutions (including farmer groups) in

developing and promoting locally appropriate options for adoption of farm trees.

RAB is the partner agency in Rwanda.

`

Agriculture Technical Assistance Facility

MINAGRI KG 569 Street Kigali Rwanda

[email protected]

Documents

Potential Sources of Funding to Target for Support in ... · KWAMP Kirehe Community Based Watershed Management Project LAFREC Landscape Approach to Forest Restoration & Conservation